Godfrey Phillips India Ltd standalone net profit of Rs56.7cr in Q1FY19, vs net loss of Rs3.10cr in Q1FY18

The company’s standalone revenue stood at Rs574.9cr, up 6.6% yoy and 5.8% qoq.

Aug 12, 2018 05:08 IST India Infoline Research Team

Godfrey Phillips India Ltd Q1FY19

Standalone Results Q1FY19: (Rs. in cr)

Q1FY19 YoY (%)
Revenue 574.9 6.6
EBITDA 97.5 1,793.2
EBITDA Margin (%) 17 1,601
Net Profit (adjusted) 56.7 -
***EBITDA margin change is bps
Godfrey Phillips reported strong set of numbers for the quarter. The revenue (net of excise duty) grew by 6.6% yoy to Rs574.9cr. Gross margin improved significantly on account of price hikes and expected product mix by 15pp. EBITDA stood at Rs97.5cr for the quarter against Rs5.1cr in same quarter last year. EBITDA margin expanded by 16pp yoy to 17%. PAT for the quarter stood at Rs56.7cr against a loss of Rs3.1cr in Q1FY18.
  • Cigarette sales (net of excise duty, assuming all excise duty was towards cigarette sales) grew by 8.4% yoy.
  • The tea division reported sales decline of 5.1% yoy. The loss for the segment stood to Rs12.6cr against loss of Rs13.6cr.
  • Gross margin for the quarter improved by 16pp. We believe this was primarily led by price hikes post GST rate revision on cigarettes and favourable product mix.
  • Advertisement cost for the quarter was down by 117bps of net sales to 4.7%.
  • Other income for the quarter was down by 24.3% yoy to Rs10.4cr.
  • Tax rate for the quarter stood at 32.4% against 36% during same quarter last year.

Technical View:

Godfrey Phillips India Ltd ended at Rs. 852.35, up by 19.95 points or 2.4% from its previous closing of Rs. 832.40 on the BSE.
The scrip opened at Rs. 851.10 and touched a high and low of Rs. 884 and Rs. 846.35 respectively. A total of 5,19,215 (NSE+BSE) shares were traded on the counter. The stock traded below its 200 DMA.

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