Jyothy Laboratories Limited (NSE: JYOTHYLAB) Q2 2025 Earnings Call dated Nov. 12, 2024
Corporate Participants:
M.R. Jyothy — Chairperson and Managing Director
Sanjay Agarwal — Chief Financial Officer
Analysts:
Manoj Menon — Analyst
Vishal Gutka — Analyst
Harit Kapoor — Analyst
Sonal Minhas — Analyst
Amit Purohit — Analyst
Karan Bhuwania — Analyst
Senthil ManiKandan — Analyst
Chinmay Nema — Analyst
Vishal Punmiya — Analyst
Shrinarayan Mishra — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to Jyothy Labs Q2 FY ’25 Conference Call hosted by ICICI Securities. [Operator Instructions]
I now hand the conference over to Mr. Manoj Menon from ICICI Securities. Thank you, and over to you, sir.
Manoj Menon — Analyst
Hi, everyone. A wonderful seasons’ greetings to all of you. Representing I-Sec, it’s our absolute pleasure once again to host the management of Jyothy Laboratories for the results conference call. Over to Madam Jyothy for the initial remarks, post which we’ll open the floor for Q&A. Thank you.
M.R. Jyothy — Chairperson and Managing Director
Thank you, Manoj. Good afternoon, everyone. A warm welcome to the Jyothy Labs’ conference call to discuss our financial performance of Q2 FY ’25. The complete results and investor presentation are available on both our company website and the stock exchange. I hope everyone had a chance to look at it.
For the quarter ending September 30, 2024, our consolidated sales reached INR734 crores, a 0.2% in value and 3% in volume growth, against a base of 11% value growth in the same period last year. In the current quarter, the variance between value and volume growth is primarily due to increased grammages and select SKU price cuts. We have seen an improvement in rural demand accompanied by robust growth in our e-commerce and quick commerce channels. Our gross margin for the quarter stands at 50.2% compared to 49.2% same period last year, with palm oil prices remaining an exception to the otherwise stable raw and packing material costs. We anticipate some price increase in the Soap categories in Quarter 3.
Advertising and promotional spending was 8.3% for the quarter, an increase of 6.4% over the same period last year. Despite softer consumer demand and seasonal impacts, we remain focused on ensuring strong brand visibility. Our operating EBITDA is at 18.9% compared to 18.5% in the same quarter last year with a PAT of INR105 crores. For the half year, revenue reached INR1,476 crores, an increase of 4% and 7% in volume with a gross margin of 50.7%. The operating EBITDA margin for the half year is 18.4%, an increase of 7.6% from same period last year. We are maintaining nine days of operating working capital and remain debt free.
With a strong cash reserve of INR659 crores following a dividend payout of INR128 crores, we are well positioned for future growth initiatives. We continue to play strong focus on our post wash products. Ujala Supreme, the main lead in this segment was well supported by a pan-India multimedia campaign. Additionally, partnerships in key markets with landmark events such as Pandharpur Yatra in Maharashtra and the Puri Rath Yatra in Odisha have shown impressive consumer engagement. We have roped in the talented Vidya Balan as the new brand ambassador for Ujala Supreme. Our latest campaign featuring her went live in October 2024. The Ujala Crisp & Shine campaign featuring megastar Nayantara is resonating well in the southern markets.
In Kerala, our Ujala IDD Detergent Powder achieved a market share of 23.9% in Quarter 2 FY ’24, aided by multimedia campaign featuring superstar Manju Warrier. We have launched exclusive liquid detergent packs for the Henko brand and are continuing to actively sample-in target markets. Our 5-litre bulk pack of liquid detergent has been well received and we successfully introduced Mr. White Liquid Detergent in key markets in October ’24.
We remain focused on our objective to build scale across different categories. In the dishwash bar category, Exo reached a market share of 13.6% this quarter with a focus on small packs yielding positive results. Multimedia campaign featuring Shilpa Shetty was sustained at optimum frequency. Meanwhile, Pril Liquid has maintained its market share at 14% with a sustained multimedia campaign starring Genelia and Ritesh Deshmukh.
We are committed to expanding the Liquid Vaporiser category with Maxo Liquid Vaporiser, experiencing strong double-digit growth this quarter compared to a category growth of 2%. It aligns with our strategy to focus more on the liquid format. Our multimedia campaign featuring Kareena Kapoor is gaining traction. Maxo Coil has seen a slight decline due to a consumer shift towards incense sticks. Our national multimedia campaign featuring Raashii Khanna is further elevating the Margo brand with a particular focus on Margo Neem Naturals to enhance visibility and appeal. We are leveraging digital channels and initiating consumer engagement to improve the effectiveness of our campaigns, consider — considering the media consumption habits of our target audience. We remain focused on building our personal care portfolio by extending our product line and adding new variants.
In summary, our EBITDA of 18.9% for the quarter indicates better operational efficiency. At the half year mark, our 7% volume growth indicates that our strategic approach and initiatives can keep up the growth momentum. The growth in market share of our brands highlights the consumer trust they have built. Going forward, our strategy includes deepening our distribution network in rural markets and expanding our retail — our direct retail presence. Volume growth will be a key metric for us as we focus both on rural and urban segments through targeted innovation and a strengthened distribution network. We remain optimistic about the long-term potential for growth through premiumization and operational efficiencies. Jyothy Labs continues to focus on sustainable and profitable revenues to meet evolving consumer needs, ensuring our legacy as a household name in India. We remain steadfast in our commitment to brand investments, distribution expansion, cost optimization and new category adoption.
With this, I finish my opening remarks, and we are happy to answer any questions or clarifications you may have. Thank you for your attention.
Questions and Answers:
Operator
Thank you very much. We will now begin the question-and-answer session. [Operator Instructions] The first question is from the line of Mr. Manoj Menon from ICICI Securities. Please go ahead.
Manoj Menon
Jyothy, just a top down sort of question here. So when I take a step back and look at the last, let’s say, one or two years of actual performance and commentary by many of your peer group, largest to smallest, there has been some sort of stress demand they always faced and used to call it out but whereas you had managed to execute superbly and grow much faster than industry with a market share gain trajectory. So what suddenly changed in this quarter? Is there something which you are picking up, let’s say, in your sales data or is it just completely external?
M.R. Jyothy
So hi, Manoj. One is, yes, we’ve been at a good growth level — at a double-digit growth level till Q1. July was not so good for us. In fact, September was at a double-digit growth. July, we saw a lot of issues in terms of — from floods and things like that, especially impacting South as a region for us and South contributes around 40%. One is that, and second is the muted demand that still continues. So these are the two factors which has led to this kind of growth.
Manoj Menon
Is it really regional disparities in growth or is it general that you have seen this across everywhere?
M.R. Jyothy
It is there across. So the consumer demand is there across, as in, the muted consumer demand is there across the country. But it was also affected largely by the seasonal impacts that has happened.
Manoj Menon
Understood. Anything on trade inventory or any difference in primary, secondary, some companies did call out, is there anything of that — those aspects or no, it’s just a pure consumer issue?
M.R. Jyothy
It’s a consumer issue.
Manoj Menon
Okay. Okay. Understood. And if I heard you correctly in the presentation, you have held down or gained shares, right? I mean, across the board?
M.R. Jyothy
Yes.
Manoj Menon
Okay, understood. Thank you. I will step back in the queue. I’ve got a few more. I’ll come back in the queue. Thanks.
M.R. Jyothy
Sure.
Operator
Thank you. The next question is from the line of Mr. Vishal Gutka from HDFC Securities. Please go ahead.
Vishal Gutka
Yeah. Hi, Jyothy, Vishal here. Just wanted to check, HUL saw high single-digit volume growth in their Home Care business, their Home Care is predominantly detergent plus dishwashing, which is a majority of our business, but our growth is very muted, although you highlighted some of the factors that led to subdued growth during the quarter, but is it due to more of competitive intensity and what are you doing to recoup the market share? It seems that you lost some market share in both the segments. So can you please highlight what are the action plans that we intend to regain the lost market share?
M.R. Jyothy
Yeah. So, Vishal, one is that — see, our growth, if you see last year base is at 11%. So that is one. Q2 is a higher quarter for us. And on top of that, we had given 11% growth last year. And like you said, we have not lost market share, we have gained market share across segments, be it detergent or dishwash. So that is not a problem. It is the consumer demand that has somehow surprised us. So that is one. And one is the base effect.
Vishal Gutka
Got it. So competitiveness, you don’t seem that has gone up significantly. There’s more or less status quo, right, with regards to competitive intensity? That factor remains more or less…
M.R. Jyothy
Yeah. So for most of them, the bases were not as much there as last year. We have been a great performer last year up to Q1. So that base effect is there. And the other bit is we have not lost market share. In fact, we have increased market share. So that is intact. Competitive pressure has always been there. Yes, it may be up and down each quarter, but we have things ready with us to combat that.
Vishal Gutka
Got it. And on new product development, so we have done in last, I think, 12 months if I recall it right, we have done Margo Neem Naturals and More Light Liquid detergent. So, if you can just give a broader perspective what the new product launches are contributing, how is — what is the contribution of the new product to overall Margo franchise? And More Light, if you can give any color on that, and the secondary adjacent question is that when do we see more aggression of NPDs because aggression, when would you see more and more launches? And a related question is that any plans of entering into newer categories like floor cleaner, toilet cleaner, air refreshener, although we are present through a form of T-Shine, but we are not seeing that much of aggression in those categories.
M.R. Jyothy
So, see, More Light Detergent was launched in the first quarter, so that is yet to — while we have launched, we have seen good pickups there. We have also launched the Mr. White Liquid Detergent in October, which is this quarter and our Henko and Ujala IDD Liquid Detergents continue to do well and they are growing at double-digit growth. So that is one.
Margo Neem Naturals is also growing steady, also our Margo original Neem Natural Soap is also doing well. So if you see Personal Care is a negative this time on a base of 25% growth last year.
Vishal Gutka
Right.
M.R. Jyothy
That is one. So that’s one difference that you see. And going forward, yes, next year, you will see a lot of launches happening across segments.
Vishal Gutka
And any plans of entering into newer categories apart from the four core categories that we have?
M.R. Jyothy
Yes, you will see that in the coming quarters.
Vishal Gutka
Okay, okay. And on margin guidance, so earlier we had guided for 16%, 17% band. Now in the first half, you delivered approximately 18.5% number with regards to margin. So would you like to up the guidance for the entire year or would like to reiterate earlier guidance of 16%, 17%?
M.R. Jyothy
We would like to maintain it at 16% to 17%. See, as we go, we don’t know where the raw material and those prices will be. As of now, palm oil prices are at a high. So for now, we have maintained — I mean, we have grown the EBITDA margins. But whatever comes as an up, we will be investing behind our brands.
Vishal Gutka
Got it. And you highlighted that September has seen double-digit volume growth. So that trend has continued in month of October as well.
M.R. Jyothy
See that is — October is — has been with lot of festivals, if you see this time. So hopefully this quarter we should see some — I wouldn’t say double-digit, but maybe mid to high single-digit.
Vishal Gutka
Got it, got it, got it. Thank you. Thank you. That’s it from side. Thank you.
Operator
Thank you. The next question is from the line of Harit Kapoor from Investec. Please go ahead.
Harit Kapoor
Yes. Yeah, hi, good evening. So just on the — on this volume growth for the quarter, you mentioned that there were some disruptions in July, which affected the numbers. So you’re saying basically ex-July, you have been able to continue at the mid to high single-digit range and it’s only kind of dropped down dramatically in July. That’s the way to think about it, right?
M.R. Jyothy
Yes.
Harit Kapoor
Got it. Got it. And the second thing was on the cost side. So apart from soap price increases, which I think industry is also taking, would — do you anticipate any pricing in the second half of the year on any — the balanced part of the portfolio?
M.R. Jyothy
See — yes, on soaps that — you could see some price increases coming in. And across the portfolio also as and when required, we’ll be taking up prices.
Harit Kapoor
Got it, got it. And to the earlier participant’s question, you did speak about new launches. So you are expecting new variants/category launches in this year in the second half or you’re saying that’s an FY ’26 kind of a thought process?
M.R. Jyothy
It’s a new calendar year launches we are…
Harit Kapoor
Got it. And just one more was on HI. So when you mentioned that the 2% growth as well — is category growth, is it, versus that LV growth for you has been double-digits. That’s what you mentioned.
M.R. Jyothy
Yeah. Within our HI segment, our liquid vaporizer growth has been at double-digits.
Harit Kapoor
And category growth has been low-single digits?
M.R. Jyothy
Yes. Category is at 2%.
Harit Kapoor
Perfect. Those are my questions. Thank you.
M.R. Jyothy
Thank you.
Operator
Thank you. The next question is from the line of Sonal Minhas from Prescientcap Investment Advisors LLP. Please go ahead.
Sonal Minhas
Hi, this is Sonal. Thanks for taking my question. Am I audible?
M.R. Jyothy
Yes, yes.
Sonal Minhas
Yes. Ma’am, I wanted to just get some subjective color on anything you’ve seen in terms of demand or any take that you have on general trade versus modern trade versus e-com. Anything you would want to share related to your product line, that will be great.
M.R. Jyothy
Yeah, so demand has not been that good, I would say and between general trade, modern trade and e-commerce, the modern trade, e-commerce is doing well — is better off.
Sonal Minhas
Okay. And general trade is relatively therefore not doing well? So is there a channel stocking issue in general trade as well? Just trying to like dig a little deeper.
M.R. Jyothy
No, no, there is no stocking issue, but generally since GT contributes larger, so there you see muted demand and that — hence you see the sales muted.
Sonal Minhas
Okay. Ma’am, is it an oversimplification to say that — and when we talk to you, we are also looking at results of your peers and the other people. Is it like a good generalization to make that the industry was sitting on a high base growth for last year and hence the kind of growth that we’re seeing right now looks muted and — or basis — or there is something subjective which you are picking up from your assessment of the market overall, which you would want to share?
M.R. Jyothy
Yeah, the industry has not been in great shape since last year. We have been doing well and for us those bases were, I mean last three, four years has been great and we are sitting on that base. Yes.
Sonal Minhas
Anything in particular which you’re picking up which is more pertinent to let’s say, why our consumer on the urban side is not buying in general, anything which you picked up from the market?
M.R. Jyothy
Nothing like that. If you see, modern trade and e-commerce have been growing, so yeah, but yes, there is a general slowdown in the general trade across the country.
Sonal Minhas
Got it, ma’am. Okay. That’s it from my side. I’ll fall back in the queue. Thank you.
Operator
Thank you. The next question is from the line of Vishal Gutka from HDFC Securities. Please go ahead.
Vishal Gutka
Yes. Hi, ma’am. Just one question on one of the smaller businesses that we have, is on laundry services. So recently acquired one brand called Quiclo. I just wanted to understand the thought process of acquiring this brand and a longer-term prospect with regards to business and if you can give any picture and if you can provide details with regards to how is the profitability for this business as of now?
M.R. Jyothy
See, yeah, Quiclo is a small brand. It’s a very, very small acquisition that was done in Hyderabad. And we have not acquired the entire business, it’s only the brand that we have acquired along with the consumers, I mean the customers that have been using, we’ve got that additionally. So our business has gone up to that extent. But we are at a EBITDA neutral as of now.
Vishal Gutka
Okay. And the long term focus of this business because earlier we had scaled down the business significantly. Now what is the business looking like with regards to next three, five years?
M.R. Jyothy
See, we would like to maintain it, that’s all. There is — if there won’t be any significant growth or that kind of plans that are there, we would be maintaining it at a breakeven.
Vishal Gutka
Got it. Got it. Thank you.
M.R. Jyothy
Thank you.
Operator
Thank you. [Operator Instructions] The next question is from the line of Amit Purohit from Elara. Please go ahead.
Amit Purohit
Yeah, ma’am, thank you for this opportunity. Ma’am on dishwash, actually just wanted to know your thoughts. I mean this quarter has — I mean, for quite some time, for the last three quarters, we’ve been growing at mid single-digit. Last quarter was a bit better and this quarter again, but I mean we took some initiatives, I think somewhere on the pouches and we were likely to drive kind that growth, which was — that SKU was probably not pushed aggressively in the modern trade channel and all. So, has — what has been the trend there?
M.R. Jyothy
So see, so if you see the growth for us across segments, it is a general this thing. Dishwash has been fine so far among the, if you see Fabric Care growth, Personal Care growth and your other HI and Dishwash, they all have been at a positive growth, right? And we have maintained our market share, which also — and in Exo, we have grown the market share, in Pril, we have maintained the market share, which also means that in this competitive environment, we have done well. So that’s all what I can say. Going forward, we have taken a lot of steps. Hopefully, that should result in good sales.
Amit Purohit
Sure. No, I was just looking for this SKU of pouches that — has that got good acceptance in the Exo — for the Exo brand? I think if I’m not wrong, that was — this corrective action was done last year or so.
M.R. Jyothy
So pouch is more from Pril point of view, not from Exo.
Amit Purohit
Okay, okay. And how has been the response?
M.R. Jyothy
It’s been okay. It’s been good. In fact, we want — and we’ll concentrate on that as well going forward. That’s the recruiter pack for us. So that will continue to be given focus.
Amit Purohit
Okay. And ma’am on the other expenditure side, I wanted to know what — because I mean, this quarter we have seen a Y-o-Y decline. What would be the reasons for this? I mean, which are the cost items that has helped us to actually reduce the cost?
M.R. Jyothy
Other expenditure?
Amit Purohit
Yeah, other expenditure.
M.R. Jyothy
Yeah, yeah, that is general stuff which has gone down. One second. So, basically factory alignment and other expense that happens during — for the factory expenses.
Amit Purohit
So there is no one-off kind of thing?
M.R. Jyothy
Nothing one-off, yeah.
Amit Purohit
Okay. Thanks a lot. Thank you.
Operator
Thank you. The next question is from the line of Karan Bhuwania from ICICI Securities. Please go ahead.
Karan Bhuwania
I have one question. So you mentioned that modern trade, e-commerce, etc., are going faster. If you could highlight what are the growth rates for those channels? And also if you could highlight what is the salience of modern trade, e-commerce and quick commerce and how they have trended over last, say, three to five years in terms of salience?
M.R. Jyothy
Yeah. So that — see, modern trade, e-commerce has been growing at double-digits is what I can say. I can’t give the exact number.
Karan Bhuwania
Okay. And in terms of salience, how they are — how much do they contribute to our revenues and how have they trended because they’ve been growing faster than general trades for quite some time to how has this salience shift happened over the last three to five years?
M.R. Jyothy
Yeah. So 6% is our overall e-commerce contribution.
Operator
Karan sir, am I audible to you?
Karan Bhuwania
Yeah. Thank you. Thank you.
Operator
Okay. The next question is from the line of Sonal Minas from Prescient Capital Investment Advisor LLP. Please go ahead.
Sonal Minhas
Hi, ma’am, thanks for taking my question again. I was looking at your trade receivables as of September 30, 2024 and comparing them to the same number for 2023. There seems to be kind of a rise from INR175 crores of trade receivables as of September ’23 to around INR245 crores as we speak right now. Any subjective commentary you would want to make on this?
M.R. Jyothy
That is increase in our institutional sales. That’s all.
Sonal Minhas
Okay, you mean institutional sales, you’re talking modern trade, if I am correct?
M.R. Jyothy
Yes.
Sonal Minhas
Got it. So this is cyclical, this is systemic? Just want to understand this a little bit more.
M.R. Jyothy
No, we have maintained our working capital at nine days. So that’s okay.
Sonal Minhas
Okay. Why I was asking because for the same sales that we do, because the sales is flat and the number is up basically, trade receivables is up by around, I think around INR75 crores-odd same time last year, so there was — this is kind of a significant delta, that’s why I was asking, that has the share of modern trade significantly gone up last year versus now or this is just like one-off we’re talking about?
Sanjay Agarwal
Yes, Sonal, so we are not giving any credit to our GT customer. So whatever balance is there, that is related to institution sales. So since that institution sales is growing up, so you may see that increase in the trade receivables by INR50 crores which is in line with our business, if you see.
Sonal Minhas
Okay. And this will remain at these levels as we go forward in the future?
Sanjay Agarwal
This will fluctuate by INR50 crore, maybe less will be there. Sometimes what happens some pipeline credit cost is there or something is there so that we have a provision. So it may drag by — it may be like plus INR25 crores, minus INR25 crores will be there. But that overall working capital that we are saying that we will maintain in 10 to 12 days, we are within that only.
Sonal Minhas
Got it. Okay. That’s it from my side. Thank you.
Operator
Thank you. The next question is from the line of Mr. Manoj Menon from ICICI Securities. Please go ahead, sir.
Manoj Menon
Jyothy, over the last three, four months, we have seen that HUL announcing a project called Stratos and reducing the TFM content and whereas Godrej has given a response in their press release last month, it seems to have — two companies seems to take a diametrically opposite stance in terms of soap formulation. Only one thing, one comment from your side, have you done some — any such projects for Margo or not?
M.R. Jyothy
No, we have not taken any such projects, Manoj. We’ll continue with what we have been doing.
Manoj Menon
Okay. Sure. Secondly, Jyothy, there is a general perception over the years that there is certain quantum of growth which you are able to deliver, let’s say, higher than industry due to, whether it is numeric distribution addition or improving productivity, so are we to assume that still continues and this overall growth is just because of one very bad July?
M.R. Jyothy
See, that — like I used to always say, we are an FMCG company and we’ll continue our journey to add retail outlets. So that will continue, but we are sitting on a huge base of retail outlets. So that difference will be there. Any additional out — increase in outlets will have to be carefully considered, but we are still on our journey to increase outlets. So that will happen. And this — the outlets that we already have, we have certain regional brands, which we’ll be taking and using these outlets to reach out more brands and more launches.
Manoj Menon
Understood. And thank you so much, and all the best.
M.R. Jyothy
Thank you, Manoj.
Operator
Thank you. [Operator Instructions] The next question is from the line of Senthil from ithought PMS. Please go ahead.
Senthil ManiKandan
Good evening, ma’am and thanks for the opportunity. First question is just a clarification. You mentioned that you will be foring into new categories, so it will be in terms of relations with the existing categories or it will be a completely a new category? If you can provide some more details on that.
M.R. Jyothy
It would be newer categories.
Senthil ManiKandan
Okay. And so the existing distribution and sales will be compatible for the new products or will you plan a new kind of distribution for this?
M.R. Jyothy
No, no, we’ll be using our existing channel. We have a good distribution setup and we’ll be using those launches in our existing channels.
Senthil ManiKandan
Thanks. Second question is on expanding geographical presence of our main wash category. So if you can just share some insights in terms of what improvements we have seen in terms of…
M.R. Jyothy
That is — see, we have certain brands which are — which we are regionally present, for example, Ujala IDD, which is present in Kerala, West Bengal and Tamil Nadu. That we would like to scale up at a national level, so that you will see step by step increase happening there in terms of distribution and reach. Like that, there are other brands as well, which we will be taking pan India.
Senthil ManiKandan
Okay. Just last question on this Liquid Detergent as a category. We are also seeing liquid detegernts in INR10 packs and things like that. So does this increases the category relevance across the customer base, and how does — so we have launched lquid detergents across all our brands, so how do you plan to take up this category and how it could be the relevant in the next three to five years for the company?
M.R. Jyothy
See, Liquid Detergent is a growing category. It’s growing at 40% to 50%. Largely from South and now you can see those things happening across the country. We were initially in the premium segment. Now, we intend to take it to all the segments because one is we are seeing good response from the consumers and Liquid Detergent is here to stay.
Senthil ManiKandan
Okay. Thanks for the opportunity.
M.R. Jyothy
Yeah.
Operator
Thank you. The next question is from the line of Chinmay from Prescient Capital. Please go ahead.
Chinmay Nema
Good afternoon, ma’am. A little general question from my side. So from a medium to long-term perspective, could you give some color on how do you — in the sense that what does it take to stay competitive in the e-commerce or the quick commerce space compared to general trade? And is it like is this part of your active strategy or if you could just give two to three key initiatives that you plan to undertake over a medium to long-term to stay competitive, specifically in the e-commerce space.
M.R. Jyothy
See, we’ve been investing behind the brands, I would say. Your brands should sell, your quality should sell. These are the most important and critical, whether you’re in general trade, e-commerce or wherever. So that’s first, main point. Second is consumers look at deals as well. So we have to be competitive that way, whichever channel that we are present on. So those are the things that will help you. Also, try and do a lot of digital activities because that’s the shift that’s happening in terms of media from TV largely to digital mediums, so to reach the right consumer at the right time.
Chinmay Nema
Okay. Got it. Thanks.
Operator
Thank you. [Operator Instructions] The next question is from the line of Vishal from YES SECURITIES. Please go ahead.
Vishal Punmiya
Yeah. Thank you, team for the opportunity. Just wanted the clarification on the price hike that you have taken in soaps portfolio. If you could highlight the quantum of the price hike? And when was it taken, is it at the end of the quarter?
M.R. Jyothy
No, we haven’t taken any price yet hike yet. We will be taking is what I mentioned, yeah.
Vishal Punmiya
Okay. So that would be executed in 3Q?
M.R. Jyothy
Q3, yes.
Vishal Punmiya
Okay. And in terms of volume growth, so you did mention that there is pain in the market. So would it be fair to assume that even in next quarter where you are sitting on a base of 11% volume growth, your volumes would be subdued even in 3Q, or based on the trends that you’ve seen in the last few days or last one and a half months, what sense do we get?
M.R. Jyothy
Yeah. So we are trying our best. We’ll — I mean, somewhere be between mid-single to high-single digits.
Vishal Punmiya
Okay. So this along with the annualization of the earlier pricing actions because we are sitting on four quarters of negative realization, so that will turn positive and also along with the additional price hike that you take, should lead to high-single digit kind of revenue growth is what you are saying?
M.R. Jyothy
There won’t be much of a price hike impact as such in this quarter. We are taking price increases, which will come in Q4 rather.
Vishal Punmiya
Understood. Okay. And in terms of margins, you seem to be conservative regarding your margin guidance where you have already done almost 18.5% EBITDA margin in first half, but you have maintained a 16% to 17% EBITDA margin guidance. Is it something that you think that could be because of a volatile inflation that might impact your margins in the coming quarters or do you basically wish to spend the entire amount in terms of generating demand in the market?
M.R. Jyothy
Yeah. So it will be a combination. I would still maintain at 16% to 17%. It will be a combination of investment, brand investment and that requires to support new launches and also a potential price hike in raw materials.
Vishal Punmiya
Understood.Thank you. I’ll get back-in the queue.
M.R. Jyothy
Thank you.
Operator
Thank you. The next question is from the line of Shrinarayan Mishra from Baroda BNP Paribas. Please go ahead.
Shrinarayan Mishra
Good evening. Thank you for the opportunity. Am I audible?
M.R. Jyothy
Yes.
Shrinarayan Mishra
Yes. So my first question was on the new categories that we would be launching. Will there be any significant capex?
M.R. Jyothy
No, not much.
Shrinarayan Mishra
Okay. And so second question was on HI category. So as we see, this category has degrown on a three-year CAGR basis by 10%. So like — I mean, how are we doing on this category or what is our plan to turn this around or I mean, what actions are we taking to beat the competition or illegal incense sticks? So some color on how we are approaching this category.
M.R. Jyothy
See, what we have maintained in the past is what I would continue here that we are — our focus is on the liquid vaporizer segment. And for us, in spite of a quarter like this, we have grown in double-digits in the liquid vaporizer segment. It’s the coil category that is seeing a negative growth we have certain — taken certain measures, which you will see in the coming year.
Shrinarayan Mishra
Okay. And the competition has launched a new product in LV category. Are we seeing any impact of that?
M.R. Jyothy
No. Then…
Shrinarayan Mishra
In let’s say October or November…
M.R. Jyothy
No, I would like to focus on what we are doing. We have grown heavy double-digits and we are happy with that.
Shrinarayan Mishra
Okay. Thank you. These are my questions.
M.R. Jyothy
Thank you.
Operator
Thank you. [Operator Instructions] As there are no further questions, I would now like to hand the conference over to Management for closing comments.
M.R. Jyothy
Thank you, all, for going through the presentation and yeah, that’s it.
Operator
[Operator Closing Remarks]