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.
