Motilal Oswal
Volumes grew by a healthy 16% YoY with market share gains (management cited achievement of market-leading volume growth). EBITDA quarter (3QFY18) was 17.1% and 19.3%, respectively. YoY to 7.6% of sales, while other expenses were down 300bp YoY to 28.6%. 15.0%) the highest third-quarter margin in the companys history. higher than our estimate of +91.6% YoY. Interest costs reduced sharply by ~50% owing to debt reduction. If not for the tax rate at 38.4% for the quarter, the PAT beat would have been even higher.
Motilal Oswal
Carlsbergs main brands in India Tuborg and Carlsberg, reported a volume growth of 17% and 31% YoY, respectively, in CY18. The improvement in price/mix was driven by robust growth of the brand and improved pricing (we believe pricing refers to the 10% price increase grant in May18 in Telangana). Profitability has improved considerably due to volume growth, positive price/mix and supply chain efficiencies, following the opening of Carlsbergs Karnataka brewery. The India business reported an organic operating profit growth of 131% YoY in 2018. Carlsberg launched the SAIL22 strategy in Mar16, aiming to make the Carlsberg Group a successful, professional and attractive brewer in the Chinese and Indian markets, which have good potential for top line growth. United Breweries grew by 12% YTD and by 37% in 9MCY18, then 4QCY18 was phenomenal for the companys largest brand in India (Tuborg) to end up with 19% volume growth for the full year.
Motilal Oswal
30 May 2018 Estimate change TP change Rating change (est. of INR13.7b) in 4QFY18, off a weak base. Volumes grew strongly by 24% YoY (industry vols grew 22%), with continued market share gains. Notably, growth was achieved in 4Q, despite no supply in Bengal due to the lack of clarity on the new excise structure. (benefiting from a favorable state mix and price hikes taken in the year). Strong sales growth meant that employee costs as a percentage of sales were down 50bp YoY to 7.5% and other expenses were down 300bp to 31.2%. Consequently, the EBITDA margin expanded 510bp YoY to 14.2% (est. EBITDA more than doubled YoY to INR2.1b (est.