Godfrey Phillips Q1 Results Review - Cigarette Volume Grew At 8.1%; Margin Slipped: Centrum Broking

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Centrum Broking Report.Godfrey Phillips India Ltd. reported Q1 FY24 results beat our estimates; revenue/Ebitda/profit after tax grew 26.2%/ 21.0%/ 115.5% respectively. Gross revenues in tobacco grew 28.7%, backed by 8.1% volume growth in cigarettes and 120% growth in leaf tobacco exports to Rs 3.1 billion, whilst non tobacco (24Seven convenience stores plus Funda Goli) grew 8.1%. Godfrey Phillips' performance was driven by-clear focus on cigarette business,expanded distribution for Marlboro led to 30% contribution,strong exports of leaf tobacco andPhilip Morris International (associate company) now wiped out losses and fuelled dividend income. Gross margin declined by 510 bp to 46.5% due to higher raw material inflation coupled with higher exports of leaf tobacco and cigarettes. Ebitda at Rs 2.4 billion grew by 21.0% despite higher other expenses (+23.9%) and employee cost (+11.8%) settling Ebitda margin at 23.2% (- 100 bp). Godfrey Phillips has strong focus on regular size filter tip segment, yet expanded footprint for TFS (146 stores) to reflect lowering losses. Checking better performance and higher other income, we increased our earnings and retain 'Buy', with a revised discounted cash flow-based target price Rs 2,383 (implying 13.6 times FY25E EPS)..Click on the attachment to read the full report:.ITC - ROCE To See Sharp Jump Post Long-Awaited Hotel Demerger: Systematix.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Godfrey Phillips Q1 Results Review - Cigarette Volume Grew At 8.1%; Margin Slipped: Centrum Broking

Higher share of unmanufactured tobacco sales cut gross margin by 510 basis points.

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