Key Highlights

Consolidated net sales for FY 18, grew by around 5.3% in FY 18. Excluding India, the rest of the world net sales grew by around 7.2%.

India suffered from early transit to GST and later changes made in GST in Nov 18. However GST issues are now stabilizing and should see the benefits in coming quarters.

Mar 18 quarter saw lower offtake due to Indian beauty and cosmetics and Pharma categories that are linked to GST which show some inventory corrections.

Ebidta margin in Mar 18 quarter was affected due to product mix and inventory corrections in US and India.

Expects a double digit growth in Indian operations driven by good demand in FMCG and a steady flow of operations post GST disruptions in the previous year. Strong traction is already visible in non oral category demand in FMCG space.

In FY 18, EU performed well with net sales growth of around 18% driven by German operations. Confident of a continued double digit growth in EU operations going forward.

The company secured new businesses in US. Colombia operations clearly showing signs of recovery. Overall US should also do well in FY 19.

The company is not worried on global trade war. If at all the company will benefit, as it has operations in US and Mexico and any increase in manufacturing activities in US and lower Chinese imports in US, will help the company.

Also the company is not worried on currency depreciation as its net exporter from India. However a sudden and sharp forex fluctuations across the globe will affect the company.

What worries the company is the pace of changes that are brought into clients own business planning due to Ecommerce and digitalization. The client itself sometimes gets surprised on its lower sales (below its expectations and targets) which in turn affect the company. In FY 19, Essel aims to work further closely with its customers and monitor events to the extent possible.

Not worried on higher crude prices, as all the contracts have a pass through clause. But like forex, any sharp increase in crude oil price in short term can lead to some short-term impact.

The company also highlighted the fact that as long as there is across the globe shift from consumption of plastic to laminated tubes, the company is not worried. So even if the globe may not grow, the shift per se will drive the growth for the company.

FY 18 saw debt reduction of Rs 140 crore after incurring capex of around Rs 120 crore. Aims to continue to reduce debt every year.

Aims to grow with strong double digit growth in FY 19 with better margin outlook.

Mission 2020 is intact in terms of sales, margin and ROCE front.

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