- In 3QFY20 Domestic consumer business sales were up 4% YoY, led by underlying volume growth of 5% YoY
- Reported net sales increased 2.6% YoY to INR98b while PAT increased 20.7% YoY to INR16.9b
- Lower operating expenses and reduced ad spends led to EBITD margin expansion
- Personal care (45% of sales) declined substantially and Home care (35% of sales) was up 9.8% YoY. It was a strong quarter for Indulekha despite Hair oils slowdown
- Near term demand outlook is challenging as urban growth moderated and rural growth slowed down even further
- Once we incorporate the GSKCH merger, there could be ~10% addition to EPS in FY21, which means that the stock trades at 47.7x FY21E vs 52.5x as it appears now
Disclaimer: The above report is compiled from information available on public platforms. inChat team advises users to check with certified experts before taking any investment decisions.
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