GSK Consumer Q4 PAT seen up 17% at Rs 130 cr

Net sales are seen going up by 17% to Rs 848 crore from Rs 727 crore during the same period.

EBITDA too is likely to increase 8% to Rs 175 crore from Rs 163 crore year-on-year, but operating profit margin is seen falling by 170 basis points at 20.7% in the January-March quarter of 2012 versus 22.4% in a year ago period.

Expectations

- GSK to be impacted from unfavorable base effect

- Expecting volume growth of 11% versus low base of 6.5% in Q1CY11 (11% in Q4CY11)

- Brand investments to drive volume growth expecting advertisement spends at 15.5% of sales (+31% YoY)

- Higher other income and lower tax rate likely to lead to 17% increase in PAT

Key things to watch :

- Stable volume growth trends

- Success of GSK’s new launches

- Non Malted Foods Drinks category