Sector Trend:
β’ Strong demand in Homecare and healthcare
β’ Institutional business has gradual comeback and now near to pre-covid level
β’ New launches: Exo All Surface Cleaner launched in South of India
β’ Media spent increased for more growth
β’ Market share has been improved
Business: Updates:
β’ A&P spend increased with growth in business segment.
β’ Segmental performance in image.
β’ Due to lower other expenses the EBIDA margins have seen growth insipte of increase in adv. cost.
Business segment:
β’ Mainwash segment has started doing better.
β’ Postwash segment is still constrain as school and office are closed. However there is gradual growth.
β’ Dishwash segment remain robust and company continuous to see good growth over diswash.
Sales Growth:
β’ Higher utlization has been helping in decreasing the cost.
β’ Sales force with higher utlization reduces per cost, hence increase in margin.
β’ Increase in price has very little part.
β’ Company has current guidance of same margins of around 14-15%.
Recovery of Detergent:
β’ All of the detergent are back on growth.
β’ Ujala and Mr White are doing good. Ujala post wash is coming back to pre-covid levels (90-95% of pre-covid levels)
β’ Crisp and Shine has been only in 2 states which is affect by covid, hence it may take time.
Household Insecticide.
β’ Coil segment company has 20% of market share and in liquid company has 8-10% of market share.
β’ Segment is still profitable.
β’ Company expects more 3-4 quarter to see a significant growth in the liquid coil segment.
β’ Coil segment company has 20% of market share and in liquid company has 8-10% of market share.
β’ Segment is still profitable.
β’ Company expects more 3-4 quarter to see a significant growth in the liquid coil segment.
β’ Product Delivery have been improved with compare to competitor.
β’ Other Expense as a % of sales will be same and there is no on-off.
β’ Tax Rate: Company is under MAT for this year and entire FY 2022, hence tax rate can be 18-20%.
β’ Personal care: Main growth driver is Margo
β’ Rural growth is higher than the urban.(1.3:1 growth rate rural:urban).
β’ Channel Inventory: Generally is 2-3 week
β’ Debt: Company stands at net cash. Gross debt is expected to be ~50-60cr.
β’ There may be little decline in A&P cost keeping EBIDTA margins expectation in line.
β’Low presence in East: East is next biggest market hence there is good presence of the company.
β’ In e-commerce company don't go for Grofferes due to unfavourable T&C.
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Business Updates:
β’ Contributor for this year was the robust product basket.
β’ Formulation contribution of 39%.
β’ See product filing in image
β’ Continue investing in infrastructure.
β’ De-bottle-necking the plant continuous to remain online.
β’ Expanding capacities in key API.
β’ See the segment revenue breakup in the image.
β’ Dedicated a special plant location for CRAMS Facility.
β’ Richcore will be named as Lauruas Bio and acquired 100% in Richcore
Business Updates:
β’ Closed with 300 customer.
β’ Plants started in phases. Recovery of textile sector in pandemic was slow.
β’ Price of certain products has reach to pre-covid level.
β’ With new capacity company is going to do filaments yarn and spurt yarn.
β’ Bio-degradable fibre has capable of bio-degrade in land and ocean within an year.
β’ company will be also starting short cut fibre which have application in cement industry.
β’ Company is also working on re-cycle footprint which will have edge in the market over long term.
Munger: What was interesting was how talented they were and then also got in so much trouble. It also demonstrates general system of finance involving derivatives is irresponsible.
Warren: Here you had extremely experienced people operating with their own money.
β’ They went broke. Why do people risk losing something very important to gain something thatβs totally unimportant? The added money has no utility whatsoever.
- MDF segment has margin of 24% during the quarter. There was price hike during the quarter as some raw material prices also went up. Company is planning 200 bps improvement in margins
- The current quarter looks good so the company is planning for 100 percent to 110 percent capacity utilization for both plants.
- The company have divided forex loss in 2 parts: 7 crore in interest and 1 crore above EBITDA.