Godrej Consumer Products Ltd - Q1FY14 Result - Microsec

Godrej Consumer Products Ltd Consolidated Net Sales increased by 24% YOY to INR1725 crore YOY and it's EBITDA increased by 11% YOY to INR225 crore. EBITDA Margin of the company decreased from 14.5% to 13.1% YOY (Ex Forex adjustment) due to higher Advertisement Expenditure which increased by 54% YOY to INR239 crore VS 155 crore YOY . Consolidated PBT before EO increased by 6% YOY to INR192 crore. Consolidated Adjusted PAT decreased by 1% YOY to INR146 crore on back of lower tax charged in Q1FY13. PAT incl EO increased by 2% YOY to INR133 crore.

Household insecticides business (Hit and GoodKnight) sales grew by 24%, Soaps business (Godrej No.1 and Cinthol) grew by 13% and Hair Colours business (Godrej Expert) sales grew by 32% YOY. India Business and International Organic Business sales grew by 19% YOY.

At the CMP of INR862, the stock is trading at a P/E of 37.2x on its adjusted FY14E EPS of INR23.2 which appears to be on a higher side. We Remain Neutral on the Stock due to its high valuation.

Source : Equity Bulls

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