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This is an entirely free service. No payments are to be made.GSK Consumer Healthcare declared results for the quarter ended June 2015. The company's revenues were up by 8% YoY, while profits rose by 19% YoY. Here is our analysis of the results:
(Rs m) | 1QFY15 | 1QFY16 | Change |
Revenues | 9,660 | 10,450 | 8.2% |
Expenditure | 8,013 | 8,461 | 5.6% |
Operating profit (EBITDA) | 1,646 | 1,989 | 20.8% |
EBITDA margin (%) | 17.0% | 19.0% | |
Other income | 458 | 549 | 20.0% |
Depreciation | 119 | 154 | 29.1% |
Finance cost | 2 | 2 | 10.5% |
Profit before tax | 1,983 | 2,383 | 20.1% |
Tax | 682 | 832 | 22.1% |
Profit after tax/(loss) | 1,301 | 1,550 | 19.1% |
Net profit margin (%) | 13.5% | 14.8% | |
No. of shares (m) | 42.1 | 42.1 | |
Diluted earnings per share (Rs)* | 144.7 | ||
Price to earnings ratio (x) | 43.4 |
The company continues to largely focus on marketing & expanding its brand extensions as well as expanding its reach across the country. Rural market expansion is a key focus for the company. The company now has over 13,000 sub distributors, which allow it to reach out to over 200,000 touch points across 27,000 villages. The company is looking to expand its distribution reach and hoping to add 1 m outlets to its network in the next year.
As for our view on the stock, we reiterate that it remains overpriced at the current level and that investors should not buy the stock at this juncture.
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