Name: Latest research reports of Procter & Gamble Hygiene & Healthcare Ltd. authored by Motilal Oswal and published by - Trendlyne research reports.
Item: Procter & Gamble Hygiene & Healthcare Ltd.
Rating: 3
Author: Motilal Oswal

Sales growth momentum sustains; margins below expectations

Neutral: Procter & Gamble Hygiene &...

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Motilal Oswal

3QFY19 (June-ending) net sales witnessed third consecutive quarter of strong sales revival at 22.9% YoY to INR7b (v/s est. of INR6.5b). EBITDA was in line at INR1.44b (down 1.9% YoY) and PAT was slightly below expectations at INR903m (v/s est. of INR928m), up 8.3% YoY. Management mentioned that adjusted for GST impact in the base quarter, sales growth was ~15%. Gross margins contracted 630bp YoY to 57.7%, likely due to (a) impact of 10% price cuts taken in Whisper Choice Ultra, and (b) absence of input tax credit under GST for sanitary napkins. Adspend declined off a high base by 270bp YoY...