Key Highlights

Non Oral Care category grew by about 15.2% YoY during Q3 FY'15. America and EU continue to show strong momentum.

In Oral care segment, the demand was slack in India and China which resulted in a 4% de growth of oral care segment for Q3 and 2.3% for 9 months ended Dec'14.

Overall lower volume growth resulted in lower OPM during the quarter.

India Standalone revenue grew by 8.6% during Dec'14 quarter to Rs 185 crore. The quarter was impacted by the delayed onset of winter and lower than expected FMCG growth.

Egypt continues to be high growth geography with 18.5% revenue growth during the quarter.

EAP revenue during the quarter grew by 1.3% impacted by lower volume off take by key oral care customers including inventory correction. However, the non-oral care sales continued to grow strongly at 41.9%, albeit on a lower base. Further, China unit got commissioned during the quarter, which affected some margins.

Americas revenue grew by 6.6% with major thrust on conversion of plastic tube into new generation laminated tube. This resulted in increase in operating margins.

Flexible packaging business has shown recovery with revenue growing by 10.6% and operating profit by 64.2%.

However, as per the management, Q4 FY'15 numbers looks good particularly in China. Management is confident of strong volume growth both in India and in China in Q4.

Overall, management expects to end the year with a net sales growth of around 13% in FY'15 and more than 20% PAT growth. Going forward, management expects OPM to improve significantly from here on.