I don’t see it as a threat – I never go for generic generic due to quality concern, although its good for those who have affordability issue. generic generic expanding the market not taking away the market.

During last AGM, management said they want to slowly focus more on international market than domestic. B2G nature of domestic business has had its challenges.

Now with renewed focus on GIS mapping by government, I wonder how company strategises. IMO this coming from centre is advantageous, in comparison to state governments.

@phreakv6 Your views?

(post deleted by author)

Q1FY25 Concall Summary

Business Updates

• The volume growth was 10.8% yoy in Q1 and the gap with value growth is due to increase in grammage
• Last year same quarter there was a one time gain of Rs 10 crores in profits due to sale sof land and hence yoy comparison is not comparable
• There is intense competition in the detergents category but enhanced distribution has helped in growth in this category
• The personal care portfolio grew by 10% yoy in Q1 and several ongoing initiatives using social media has helped the brand salience amongst youth

Participants

HDFC Securities

IIFL

Centrum Broking

Nuvama

Antique

Axis Capital

Nirmal Bang

ELARA Capital

Investec

ICICI Securities

QnA

• A liquid detergent has been launched under “More Light” with a price point where it is affordable for a consumer who prefers value. The intent here is to increase penetration of liquid detergent amongst consumers
• The cash is being kept for future opportunities at the moment
• No particular state is doing better relatively and the growth is all across with modern trade and ecommerce doing very well
• The market share gains continue and in dishwash with EXO the distribution expansion has helped grow market share from single digit to double digit in East India
• The growth rate in liquids are from a smaller base and hence the numbers are higher and as the portfolio is expanding the focus will be to enable consumer to use a better quality product through liquids
• The adoption of liquids is more in the southern part of the country
• The current focus is volume growth and at these level of prices there is sufficient margin that is delivered so that the management can invest back in the business as well so there are no plans to increase prices
• The company has gained 300 bps market share in the HI segment and that shows that efforts behind this segment is working
• With an uptick in rural demand the concern of rural market not doing well have now abated and going forward more optimistic on rural demand getting better
• Modern trade and ecommerce combined are 15% of the revenues and growing at a much faster pace than general. This was 10% three years ago
• The margins in the HI segment should improve sequentially and efforts are behind that and that could improve the business margins on an overall basis as well
• In terms of new launches whenever there is an opportunity to enter a category it will be done while the existing portfolio too continues to grow at a fast pace

Also find enclosed the investor presentation
Presentation.pdf (2.1 MB)