KRChoksey: Essentials Continue Its Strong Streak While Discretionary Business Impacted
A customer pushes a shopping cart along a food aisle while shopping inside a local supermarket. (Photographer: Yorgos Karahalis/Bloomberg)

KRChoksey: Essentials Continue Its Strong Streak While Discretionary Business Impacted

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

KRChoksey Report

Personal care essential business witness healthy growth; margin expansion due to cost rationalisation.

Top line impacted due to decline in discretionary business, partially offset by healthy growth in essentials.

Colgate Palmolive India Ltd. reported 4.1% YoY decline in sales mainly due to impact on toothbrush sales being discretionary in nature.

Godrej Consumer Products Ltd. reported decline in discretionary segment (soap, hair colour), but was offset by growth in household insecticides and hygiene business.

Emami Ltd.’s healthcare and pain management segment reported growth, while hair oil and male grooming range was severely impacted.

Gross margin improved for all the companies mainly due to benign cost of raw materials. Colgate Palmolive, Godrej Consumer Products and Emami reduced their other expenses by 12.6%, 15.7% and 41.9% respectively to arrest decline in operating margins.

Click on the attachment to read the full report:

KRChoksey Research_Consumer_Personal Durable Sector_Q1FY21 Post Earnings Review.pdf

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