Highlights of the Call By Capital Mkt
The consolidated net sales have gone up by 9% to Rs 400.73 crore driven totally by volume. The net profit inclined by 54% to Rs 38.77 crore.Power Brand sales grew by 11%.Gross Margin increased to 51.5% as compared to 47.8% in last year same period. Softening of commodity helped gross margin in Q2. Sees soft commodity regime for next 2 qtrs. 80% of gross margin improvement was able to take to bottom-line.EBIDTA margin was up from 10.7% to 13.8% YoY,A&P to Sales Ratio is at 12.2%. The mgmt said that ASP spend will be 12- 13% for FY16. Even though Q2 was low, ASP overall will be in-line with year guidance. ESOP will come down from December qtr.Other expense – 6 months number can be taken as runrate going fwd.
Fabric Care grew by 12% as Ujala did well. Ujala has grown by 19% in Q2. There is also base effect in Ujala. Expects 9-10% growth in Ujala gng fwd.Weight average price hike of 7% in Q1 taken in UjalaUajal Crisp & Shine launched in Tamil Nadu in June quarter.
Detergent market has grown by 10% value wise in Jan-June 2015 period, as per Neilsen. Henko volume grew by 6%. Value growth is challenging for Henko in current competitive environment. The mgmt said that lots of company has cut detergent prices in range of 25%.
The mgmt said that bucket wash of Henko will activate in coming days, presently only matic wash it is present. Bucket wash is 80% of premium detergent market.
Dishwash grew by 10%. Dishwash bar market has grown by 4% in volume and 3% in value, in Jan-June 2015 period, as per Nielsen. The company has grown by 15% in volume and 7% in value. Dishwash has seen mid teen volume growth in Pril liquid and Exo bar. There was slight drop in price in Exo bar due to price competition. Exo was re-launch in new packaging.
The mgmt said that dishwash liquid category de-grew due to urban problem and bar due to rural problem.Dishwash liquid value growth was more due to selling more bottles and fewer pouches. Pouches non-availability led to more growth of bottle.
Mosquito repellent grew by 14%. Coil market has grown by 4% in volume and 5% in value in Jan-June 2015 period, as per Nielsen. The company in coil has grown by 5% in volume and value. Liquid vaporizer market has grown by 6% in volume and 9% in value in Jan-June 2015 period, as per Nielsen. The company in coil has grown by 35% in volume and 39% in value. Maxo liquid total contribution to Maxo is 30%.Coil category not grown because of hottest September and October month.Liquid Vaporizer category also slowed down.
Maxo card will be launch soon all over India in next 2- 3 months. 15% of mosquito repellent revenue should come from card in next fiscal. Its margin is 5% lower than liquid.
Personal care sales have grown by just 2% as Margo has not done well in Q2.
South and East region is not performing good compared to West and North. As a result, Margo didnt do well, which is strong in South and East .Modern Trade sales contribution is 8% to total sales.Net Debt will be Rs 275-280 crore for March 2016
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