For quarter ended December 2016

The net sales flat at Rs 725.95 crore due to severe liquidity crunch in domestic markets and poor economic conditions in Middle Eastern countries. Despite the liquidity crunch owing to demonetization, the company's domestic business delivered a top-line growth of 3% . Volume grew by 0.2%.

Antiseptic Cream grew by 13%. Cool talc sales grew by 32%. Facewash sales grew by 38%. Keshking range sales grew by 2%. Vasocare sales grew by 21%. Balm sales de-grew by 5%. Navrantna cool oil de-grew by 4%. Fairness cream sales de-grew by 18%. Pancharishtha sales declined by 15%

Navratna Cool Oil, Balms (Zandu and Mentho Plus) and Navratna Cool Talc further increased their market share to 62.0%, 56.3% and 27.1% respectively. Boroplus, Fair and Handsome Cream and Kesh King continued to maintain leadership with Volume Market Shares of 75.4%, 65.2% and 29.8% respectively.

Globally, business environment continued to be volatile and challenging. While Bangladesh delivered good growth, worsening geopolitical situation in MENAP region and Africa impacted the sales in those regions adversely. The company, however continued to gain market shares across major portfolio. While International Business excluding MENAP region grew by 10%, overall it de-grew by 16%

The company continued its focus on innovations with launch of BoroPlus Perfect Touch and Fair And Handsome 100% Oil Clear Instant Fairness Facewash during the quarter. The company also introduced Kesh King Ayurvedic Shampoo in a sachet at an attractive price point of Rs 3/- to induce trials.

OPM has increased by 121 bps to 35.6% due to fall in purchase of finished goods, ASP and other expenditures. The operating profit inclined by 4% to Rs 258.54 crore.

Other income increased by 55% to Rs 8.17 crore. The interest cost decreased 26% to Rs 12.72 crore while depreciation/amortization has inclined by 14% to Rs 81.66 crore. Amortization of acquired trademarks / brands of Kesh King was Rs 70.48 crore. The profit before tax increased by 4% to Rs 172.33 crore

The tax outgo for the quarter stood at Rs 38.09 crore, inclined by 19%. The effective tax rate inclined from 19.26% to 22.10%. After considering minority interest, the net profit flat at Rs 134.34 crore.

For nine months ended December 2016

The net sales have increased by 9% at Rs 1954.89 crore. The OPM has increased by 180 bps to 29.7%. The operating profit inclined by 16% to Rs 581.02 crore.

Other income decreased by 39% to Rs 21.90 crore. The interest cost increased 1% to Rs 41.21 crore while depreciation/amortization has inclined by 41% to Rs 232.22 crore. The profit before tax flat at Rs 329.49 crore

The tax outgo stood at Rs 72.78 crore, inclined by 46%. The effective tax rate inclined from 15.13% to 22.08%. After considering minority interest, the net profit decreased by 9% to Rs 257.10 crore due to amortization and fall in other income.

Valuation

The scrip is trading at Rs 1163.15 on BSE.

The total promoters holding in the company stand at 72.74%.