Commenting on the results, Kaustubh Pawaskar, Principal Analyst, ICICI Direct, said revenue development was broadly as expected while margins exceeded expectations.
“On the revenue front, the numbers are broadly in line with what we expected for the quarter. Margins were slightly better than expected. We expected an EBITDA margin of around 22.5%, while margins came in at around 23%. So on a margin level, the numbers are better than we expected. We are also seeing some growth recovery happening in most segments, such as home care and beauty. So I think the benefit of the GST rate cut is also coming in. That came with some delay, but now it is starting to reach most companies, and we are seeing that impact.”
ET Now also sought clarity on profitability, after adjusting for one-time costs related to implementation of labor laws.
Pawaskar noted that margins, excluding exceptional personnel costs, remained well above expectations.
“Yes, so the profitability, if you exclude the ₹113 crore of one-off expenses, which are part of the employee costs related to the labor law, and if you exclude that, the EBITDA margins came to about 23%, which is better than what we expected of about 22.5%.” gradually stabilizing for FMCG players.
Analysts will continue to monitor trends in volume recovery and margin sustainability in the coming quarters as consumer demand and input costs remain key variables for the sector.
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