Godfrey Phillips India (500163) Q4 00/01 earnings summary

Executive summary

• FY2000-01 faced an economic slowdown and declining cigarette demand; after-tax profit rose despite lower sales income and higher marketing spend.

• Competitive strengths cited included national brands, broad distribution and long-standing relationships with trade partners, farmers and consumers.

Financial highlights

• Sales income was Rs.99,247.43 lacs vs Rs.108,263.15 lacs; gross revenue was Rs.100,439.21 lacs vs Rs.109,408.11 lacs.

• PBT rose to Rs.7,236.98 lacs from Rs.6,385.95 lacs; PAT was Rs.4,655.98 lacs vs Rs.4,185.95 lacs.

• EPS was Rs.44.77 vs Rs.40.48; dividend was proposed at Rs.16 per share vs Rs.14.50.

• Excise duty expense declined to Rs.44,375.22 lacs from Rs.57,192.54 lacs; advertising and sales promotion rose to Rs.9,651.89 lacs from Rs.8,490.76 lacs.

Outlook and guidance

• Management expected good monsoon conditions to support improved consumer offtake in the remainder of the current year, while maintaining cautious optimism.

• Restructuring and reorganization were underway to improve competitiveness, launch new products and regain market share; R&D-developed products were planned for launch during the year.

• Tobacco exports were expected to exceed FY2000-01’s Rs.9.55 crore; subsidiary export turnover target was Rs.350 lacs vs Rs.262.22 lacs achieved.