The margin expansion -- led by higher revenue share from the personal care category (46 per cent vs 42 per cent YoY) -- and the cost efficiency measures initiated by the new management team of Blackstone supported the growth.
The company’s revenue from operations grew 6.9 per cent to Rs 731 crore from Rs 684 crore in the corresponding quarter of previous fiscal. Consolidated net profit, too, jumped by 49 per cent YoY at Rs 79.6 crore as against Rs 53.4 crore in the year ago quarter.
Analysts at Systematix Shares and Stocks (India) increase FY20/21E earnings by 11/21 per cent due to strong growth in the high-margin personal care category, improvement in the EU margins, ongoing cost savings measures across the plants and strong commentary by the management to sustain the growth and profitability momentum.
"Blackstone has completely changed the Board of Directors. The new board members have relatively better capabilities and experience to meaningfully contribute to the growth of the company. Additionally, Blackstone’s team of advisors is working to deepen the client relationships, reduce waste and improve the operating efficiencies at various stages," the brokerage firm said in result update with ‘buy’ rating on the stock and target price of Rs 150 per share.