ICICI Direct's research report on GSK Consumer
Net revenue for the quarter grew 7.9% YoY to Rs 1,194.3 crore on the back of 5.4% volume growth. However, domestic volume growth was slower at 4% YoY with export region growing 15% during the quarter (due to inclusion of Malaysian territory). The growth is largely led by increasing contribution of sachets. Other income increased by ~40% on account of clearance of old vender balances. Adjusting for one off, it has grown by 15%. EBITDA increased 21.8% to Rs 280.4 crore and EBITDA margins increased 268 bps to 23.5% on the back of 150 bps savings on overhead expenses, 110 bps lower advertisement spend to sales and 40 bps gross margins expansion. PAT witnessed growth of 23.8% YoY to Rs 248.1 crore aided by higher other income and higher operating profit.
Outlook
We maintain our target price of Rs 8340/share on the stock with HOLD recommendation.
For all recommendations report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest business news, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!