February 11, 2017 / 14:52 IST
Revenue, at INR 63.6bn (down 12% YoY), was in line with our estimate. Gross margin improved 160bps QoQ to 35.1% (best in past 10 quarters despite weakest volumes), due to favourable commodity cost benefits. Ongoing LEAP programme benefits (INR 1.9bn in 9mFY17) and lower marketing spend due to demonetisation led to EBITDA beat of 12% at INR 10.7bn (down 5% YoY).
OutlookWe lower FY17/18E EPS 8%/9% to factor in weak sales and roll over to FY19E with EPS of INR 214.We maintain ‘HOLD/SU’ with target price of INR 3,529 (17x FY19E core EPS plus INR 368 cash per share). At CMP, the stock trades at 17x/15x FY18/19E PER.
Story continues below Advertisement
For all recommendations, click hereDisclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions. 
Read More
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
