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For the quarter ended June 17, consolidated net sales stood at Rs 560.72 crore up by 6% YoY. OPM stood at 18.2% down by 30 bps which restricted the OPM growth to 4% to Rs 101.87 crore. Other income was up by 13% to Rs 5.97 crore. Interest cost and depreciation cost were up by 3% and 28% respectively to Rs 13.50 crore and Rs 40.21 crore thus resulting in a 7% fall in PBT to Rs 54.13 crore. After providing total tax of Rs 19.36 crore down by 4% YoY, PAT stood at Rs 34.77 crore. After providing MI credit of Rs 49 lakh as compared to 68 lakh for June 16 quarter, consolidated PAT for June 17 quarter stood at Rs 34.28 crore down by 9% YoY.
Net sales from Amesa geography was flat at Rs 241.85 crore, that from EAP region stood at Rs 132.93 crore up by 3%, from America net sales stood at Rs 105.7 crore down by 5% while EU market registered a 43% rise in net sales to Rs 117.34 crore.
PBIT from Amesa region stood at Rs 30.75 crore down by 15% YoY with PBIT margin of 12.7%. PBIT from EAP stood at Rs 22.16 crore up by 39% YoY with PBIT margin of 16.7%. America registered a PBIT of 7.38 crore with PBIT margin of 7% for June 17 quarter as compared to 11% for June 16 quarter. EU region registered PBIT of Rs 1.79 crore with margin of 1.5% as compared to 2.4% for June 16 quarter.
Other updates
GST implementation in India impacted the revenue growth due to destocking by customers. Estimated revenue loss on account of GST for the quarter is Rs 16.50 crore. But for this, the revenue growth would have been 8.7% YoY.
EAP revenue is showing sign of recovery helped by both oral and non-oral care category.
New unit in Colombia is stabilized and posted growth of 42.4% at constant currency.
Europe revenue excluding EDG de-grew by 9.8% in constant currency. However, EBIT grew 49% helped by improved product mix. EBIT margin of region excluding EDG improved by 3.5 bps to 5.9%.
EDG acquisition contributed to 59.6% of revenue growth in constant currency. However, it has significantly impacted region's EBIT on account of lower offtake although operating efficiencies improved as per plan. Going forward, it is expected that the volume will ramp up and help the EBIDTA margin to align with rest of Europe.
Net Debt as at June 17 end stood at Rs 630.60 crore as compared to Rs 703.50 crore for Mar 17.
ROE and ROCE on TTM basis is at 17.8% and 17.0% respectively.
Overall
The quarter has been impacted by GST linked destocking in India and weaker offtake in US and Europe. Further, significant appreciation this quarter in Indian Rupee against various currencies has depressed the reported performance on account of translation impact. However, the company is seeing traction in volumes in major markets in Germany, US and China, which should help improve performance in coming months.
Performance for the 12 months ended Mar'17
FY 17 financials include financials of EDG Germany from Oct 16 onwards and hence are not comparable on YoY basis with FY 16 financials. EDG reported net sales of around Rs 100 crore with EBIDTA margin of 10% and loss of around Rs 15 crore at PAT level.
For the 12 months ended Mar'17, the company reported consolidated net sales of Rs 2302.29 crore. OPM stood at 18.3% resulting in OP growth to Rs 421.30 crore. There were some one off impact on account of unforeseen hitches in stabilizing the new units in Colombia and India and a further impact of demonetization on Indian operations.
Other income stood at Rs 35.30 crore. Interest cost and depreciation stood at Rs 57.53 crore and Rs 141.18 crore respectively, resulting in a PBT of Rs 257.59. There was a forex gain of about Rs 15.65 crore for 12 months ended Mar'17. After providing for total tax of Rs 18.62 crore and with profit from JV at Rs 1.05 crore, the consolidated PAT for 12 months ended Mar'17 stood at Rs 195.60 crore.
Net Sales from Amesa region stood at Rs 980.80 crore that from EAP region net sales stood at Rs 552.85 crore, from America region, net sales stood at Rs 482.77 crore and that from EU region stood at Rs 435.25 crore.
PBIT from Amesa region stood at Rs 127.81 crore that from EAP region, was at Rs 78.08 crore, from America region, it was at Rs 52.65 crore and for EU the PBIT stood at Rs 24.27 crore
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