(%) Margins (%) P&G; Hygiene and Healthcare (PGHH) reported flat sales in 4QFY20 (June year-end), which came as a pleasant surprise given the lockdown-related disruptions seen during the quarter. Operating margins also bucked the trend of very steep decline in margins in 4Q v/s the preceding three quarters, something that was witnessed in FY18 and FY19. Accordingly, significant EBITDA and PAT beat was reported v/s expectations. While the structural opportunity remains attractive in both the Feminine Hygiene and Healthcare segments, valuations are fair at 51.8x June FY22 EPS. Ad spends declined 41.5% YoY to INR411m, employee expenses grew 43.6% YoY to INR381m, whereas other expenses were flat YoY at INR2.1b. As a percentage of sales, ad spends declined by 450bp YoY to 6.5%, employee costs rose by 180bp YoY to 6%, and other expenses were down by 30bp YoY to 33.4%. This led to a FY20 sales/EBITDA/PAT grew by +1.