Godfrey Phillips Q4 Review - Strong Recovery But Fear Of Second Wave Looms: Centrum Broking
BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Centrum Broking Report
Godfrey Phillips India Ltd. continued its recovery trajectory, with Q4 FY21 revenue/Ebitda/profit after tax growing faster than expected at 18.3%/76.3%/97.7%.
Domestic cigarette volumes grew ~12%, but exports declined sharply. Improved supplies for Marlboro helped to lift revenue.
Gross revenue grew 27.5% for tobacco segment, but slipped 8.7% for non-tobacco segment including twenty four-seven convenience store.
Moreover, adverse product mix and lower operating leverage resulted in 455 basis point gross margin contraction to 53.2%.
However, tight control on other expenditure (down 16.8%) and significant reduction in average selling price (down 41%) resulted in Ebitda margin expanding 707 basis point to 21.5%, despite surge in employee cost (up 15.9%).
Click on the attachment to read the full report:
This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.