 "Emami, Tata Global Beverages hit 52-week low post September quarter results")
Shares of Emami and Tata Global Beverages have hit their respective 52-week lows, falling by up to 9% on the BSE in intra-day trade on Wednesday, after reporting a weak set of numbers for the quarter ended September 2018 (Q2FY19).
Tata Global Beverages slipped 9% to Rs 206 after the company posted 19% year-on-year (Y-o-Y) growth in group net profit at Rs 1.84 billion in Q2FY19, on account of lower tax and higher profits from associates and joint ventures.
Operational revenue grew 7% at Rs 17.61 billion after excluding the impact of business exit as compared to the corresponding quarter of the previous year. Earnings before interest, tax, depreciation and amortization (Ebitda) declined 11% at Rs 1.84 billion due to higher commodity cost and higher investment behind brands and listings.
Emami was down 4.5% to Rs 386 in intra-day trade after personal products company posted flat growth in consolidated revenue at Rs 6.28 billion on the back of 4% decline in domestic volume. The net profit during the quarter was down 15.7% at Rs 827 million over the previous year quarter. Ebitda margin declined 190 bps at 30.15% in Q2FY19 from 32.06% in Q2FY18.
The management is targeting to end the year with double-digit sales growth, not double-digit volume growth (as guided earlier), unless winter sales do extremely well. The company likely to face pressure on gross and EBITDA margins in H2FY19 due to higher mentha cost and rising ad spends (v/s 1HFY19).
Thus far in the calendar year 2018, Emami has underperformed the market by falling 41%, as compared to a marginal 0.11% decline in the S&P BSE Sensex.
The stock has underperformed over the past two years, which is not surprising, as absolute PAT declined by 4% over FY16-18 (and likely 6% EPS growth in FY19) compared to 18% CAGR over the preceding five years, according to brokerage firm Motilal Oswal Securities.
At 01:29 PM; Emami (down 2% at Rs 395) and Tata Global Beverages (5% at Rs 217) were trading lower, as compared to 0.52% rise in the S&P BSE Sensex.
Tata Global Beverages slipped 9% to Rs 206 after the company posted 19% year-on-year (Y-o-Y) growth in group net profit at Rs 1.84 billion in Q2FY19, on account of lower tax and higher profits from associates and joint ventures.
Operational revenue grew 7% at Rs 17.61 billion after excluding the impact of business exit as compared to the corresponding quarter of the previous year. Earnings before interest, tax, depreciation and amortization (Ebitda) declined 11% at Rs 1.84 billion due to higher commodity cost and higher investment behind brands and listings.
Emami was down 4.5% to Rs 386 in intra-day trade after personal products company posted flat growth in consolidated revenue at Rs 6.28 billion on the back of 4% decline in domestic volume. The net profit during the quarter was down 15.7% at Rs 827 million over the previous year quarter. Ebitda margin declined 190 bps at 30.15% in Q2FY19 from 32.06% in Q2FY18.
The management is targeting to end the year with double-digit sales growth, not double-digit volume growth (as guided earlier), unless winter sales do extremely well. The company likely to face pressure on gross and EBITDA margins in H2FY19 due to higher mentha cost and rising ad spends (v/s 1HFY19).
Thus far in the calendar year 2018, Emami has underperformed the market by falling 41%, as compared to a marginal 0.11% decline in the S&P BSE Sensex.
The stock has underperformed over the past two years, which is not surprising, as absolute PAT declined by 4% over FY16-18 (and likely 6% EPS growth in FY19) compared to 18% CAGR over the preceding five years, according to brokerage firm Motilal Oswal Securities.
At 01:29 PM; Emami (down 2% at Rs 395) and Tata Global Beverages (5% at Rs 217) were trading lower, as compared to 0.52% rise in the S&P BSE Sensex.
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