EBITDA (earnings before interest, tax, depreciation and amortisation) margins expanded 60 basis points (bps) during the quarter to 18.7 per cent on account of operating leverage in the business. The management said growth initiatives continue to be on-track, including setting up of a Greenfield facility at Pathankot, acquisition of South and West India sub-territories and other investments to drive growth. The company confident of strengthening its market share across categories and drive volumes to sustain growth momentum going forward.
The Company raised Rs 900 crore through qualified institutional placement (QIP) during the quarter, were utilized for repayment of debts.
With operation at Morocco and Zimbabwe exhibiting strong momentum and Sri Lanka business getting back to normal, analysts at YES Securities see a strong possibility of international subsidiaries to turn profitable in CY19. The brokerage firm retains ‘BUY’ rating on the stock with a 12-month price target of Rs 809 per share.
At 01:10 pm, the stock was up 8 per cent at Rs 760 on the BSE, as compared to 0.53 per cent rise in the S&P BSE Sensex. The trading volumes on the counter jumped nearly five-fold, with a combined 2.1 million shares changing hands on the NSE and BSE so far.