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The company held its conference call on 24 Jan 2019 and was addressed by Mr. Ashok Goel MD
Key Highlights
Non oral care revenues at 43.5% of total revenues (vs. 41.3% same quarter last year) and oral care at 56.5% (vs. 58.7% same quarter last year). Continue to be optimistic on non oral care revenues.
Egypt and East Asia Pacific and USA have seen good growth and market share improvement toward non oral care segment.
Gross margins have remained same in Dec 18 quarter; overall margins were slightly under pressure due to exchange rate fluctuations and investments towards strategic reasons
In Russia the company shifted to new premises and production commenced. Spare capacity from USA to be shifted to Mexico. Expects some increase business from Mexico from existing and new customers.
EU has seen robust pipeline for Poland and Germany. Active discussion of commercialization for some orders. Expects margins to come back in EU geography and a 300 bps improvement is minimum what management is expecting for FY 20.
In India, the Pharma regulation issues are behind. Customers picking up orders from Dec 18 onwards. Specific customer is now coming back. Mar 18 quarter revenue will see highest revenues from Pharma segment in Indian operations. The revenue will sustain in every quarter from that.
2nd laminator commenced in India. Sales commenced in Dec 18 quarter from this unit.
Assam unit commenced and started commercial production
Net debt at around Rs 615 crore. Debt will be kept on reducing in coming years.
Rs 25 crore as part payment from dues and interest from related party. By 31st Mar entire dues will be cleared.
Is open for merger or acquisitions and also open for talks of buyouts etc.
Mission 2020 is intact in terms of sales and margin front and on ROCE front as well.
Tax rate will be around 32-33% for FY 19
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