The volume growth in prestige and above segment looks very good. The contribution of this segment in overall volume has also gone up from 30 odd % to 37%, on QoQ & YoY basis. If we look at total volume then it has also inched upward.
The volume growth and product mix change (from lower margin products to higher margin “prestige and above” segment) ideally should have resulted in the better margins but RM prices are being counterproductive.
However I believe that margins are somewhere near bottom and can start moving up. This is just a guess and company has seen even lower margins (currently around 12% and lowest were 10%) so even more margin erosion can not be ruled out.
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