The consolidated net sales de-grew by 16% to Rs 367.18 crore. The net profit decreased by 43% to Rs 25.95 crore.

Blended GST rate is 21% (20.5% in VAT regime)

Efficiency from supply chain initiative expected 1.5% (Full year benefit)

Expects 8-10% top-line growth and EBITDA margin of 15% for Q2.

35% of business comes from wholesales. North and East are yet to recover. Also some part of West

Kerala distribution association asked for increase in margin. As such June had no sales in kerala resulted in sale loss of Rs 40 crore. Now the normalcy is returning.

GST – Billing started from August.

MT starts fresh negotiation in parallel (Closed end July)

Secondary sales is higher by 15% over primary sales

CSD system readiness delayed – no purchase in June & July (Billing started)

Gross Margin improved due to price increases taken in FY17

Employee cost increase due to regular yearly increase in salary

Sales breakup – fabric care decreased by 15% to Rs 175.8 crore, dishwashing decreased by 14% to Rs 115 crore, household insecticides decreased by 19% to Rs 30.1 crore, personal care decreased by 19% to Rs 45.3 crore while other products grew by 9% to Rs 8.8 crore.

Brand wise sales breakup:- Ujala degrew by 21% to Rs 93.2 crore, Exo degrew by 17% to Rs 84.2 crore, Maxo degrew by 19% to Rs 30.1 crore, Henko degrew by 6% to Rs 46.2 crore, Margo by 19% to Rs 40.4 crore and Pril degrew by 6% to Rs 31.2 crore.

Ujala Fabric Whitener:- Recovery expected in Q2FY18

Maxo on the path to recovery on the back of a favourable season

July recovery largely on account of restocking channel partners

Secondary sales continue to progress on track

Wholesale in some parts still reluctant to purchase

CSD and MT back on track for August – September

Margin – will take up gross margin by 200 bps to 50% . 200 bps target to improve GM and 150 bps OPM gain from efficiency improvement. The mgmt is looking at 50% gross margin and 15-16% EBITDA margin. Anything going above it will be plough back in ASP.

No price hike will be taken till 31^st March 2018 unless required due to crude oil price rise.

The mgmt said that in Q3, it will push sales by another 2% if it achieves its Q2 sales target.

ASP budget of 12% for FY18.

July GT sales growth is 18% YoY.

GST impact on distribution - South is normal, followed by West, North will take some time and East will take more some time.

MT – baring 2 big retailers, all are in normal mode.

GST - 60% of wholesalers return to normal business, another 20% will become by Sept. and remaining 20% by Dec..

North and East is only slow in wholesale, rest is normal.

Volume growth for Q1 – declined by 17%.

There was additional discount given in trade channel.

EBITDA margin - looking at 15% for Sept. qtr and for FY18 expects it be around 15-16%.

Aug. and Sept. months will see revival in mosquito repellent business in North and East.

The mgmt target to reach direct distribution to 1 mn outlets. It is looking at direct distribution in cities where population is 10K and above.

July performance (YoY)