Key Highlights

Muted revenue growth in India due to supply chain rebalancing by customers post the changes in GST in Nov 17. Products were recalled and packaging was modified which affected the overall volume. Things are back on track from Jan 18 onwards. If there is no more such changes in GST, volumes will come back in Mar 18 quarter.

Delay in order offtake by customer in EU and delay in commercialization of some products to new customers affected sales and profitability. Overall challenge in EU markets continues to remain from both existing and new customers. Market itself declined.

Except EU, rest of the world is doing okay.

Egypt markets continue to grow robust and grew by 27% on YoY basis for Dec 17 quarter in non oral care segment.

India and Egypt both should see high double digit growth in FY 19.

Revenue growth in Mexico and Columbia was lower than anticipated. Sale to new customer in Columbia will commence in FY 19 which should lead to better product mix in non oral category.

Operational efficiencies helped margins. Raw material cost is not a worry at this moment.

Net debt Dec 17 stood at Rs 600 crore lower by Rs 65 crore QoQ basis. Average interest cost stood at 5.9%

Focus is now on topline with margins to remain more or less at the current levels.

Factory is under construction in Assam. Expected to be operational by Sep 18. Expansion will be more on a tolling model and has tax incentives.

EU should see margins coming back and improve by 350-400 bps in FY 19. Enquiries are good. Pipeline is strong, but conversion took more time than anticipated. German acquisition will also show some improvement in FY 19. There is a scope for increasing capacity utilization and may be to put up further capacities going forward.

On track to achieve mission 2020.

Tax rate will be around 33-34% for FY 18