Key highlights of Conf Call by Capital Mkt
The net sales increased by 33% to Rs 97.05 crore while net profit inclined by 98% to Rs 4.74 crore. Top-line growth was fully volume drive.
Investment in innovative marketing helped sales to grow. However, innovative gift impacted the gross margin.Employee cost was high due to recruitment at top level and in south market.
Marketing expenses for Q2 was lower on innovative consumer promotion.
Crax and Natkhat both recorded healthy growth.Natkhat has shown good growth in Rs 5 pack.The company has seen healthy growth across all zones.The company is increasing production capacity at existing Noida location at cpaex of Rs 25 crore which will be done through 75% external debt and 25% internal accrual. Rs 100 crore additional revneu is expected from this capex.
The mgmt said that it is working on new products.The company' term loan is Rs 35- 36 crore at present. After capex, term loan will go up Rs 52 crore. The cost of loan will be 11%.The company's direct reach is at 2 lakh outlets,Q1 is lean quarter as schools are closed. Q2 is strong quarter. At end of Q3, sales drop due to winter. Q3 and Q4 are good.The last time price hike taken by the company was in April 2014.2-2.5% ad spends to sales in Q2
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