Key Highlights

Around 59% of total revenue came from oral care segment and rest from non oral care.

Indian operations saw a 6.3% revenue growth in June 18 quarter and growth could have been better due to some inventory corrections by key customers and some change in regulations in pharma segment due to change in display from brand name to generic name leading to change in packaging material. Expects things to improve from H2 FY 19 onwards.

Company constantly developing new technology to cater to threats against competition. Threats from ecommerce business is a serious one as it requires changes in business plan by the customers affecting the company's business.

The quarter has seen increased offtake from key customers in US, Egypt and Germany.

The company has done a relocation of its Russian unit to a new unit in EU to serve customers better.

US saw its EBIT margin improving from 12.7% to 16% in June 18 quarter. This was due to better product mix and higher offtake. Local manufacturing preference also helped in higher sales and better economies of scale.

Overall Ebidta margin was under pressure in June 18 quarter. It was a one off thing which was hit by adverse product mix and higher wages. Sale of low diameter tubes were higher in this quarter.

Targeting to achieve 20% margin growth across the geographies. EU market has lot of potential to improve margins.

Aiming for 15% growth of topline and 20% bottom line growth for FY 19.

Net debt stands at Rs 601 crore as on June 18.

The company commenced new facility in Assam in July 18 with an investment of around Rs 60 crore. In the first phase, the facility is equipped to produce 200 million tubes per annum and will ramp up to 750 million tubes over a span of 18 months.

Mission 2020 is intact in terms of sales and margin front and on ROCE front as well.

Tax rate will be around 33-34% for FY 19