Godfrey Phillips

Godfrey Phillips posted a good performance for Q3FY14. It posted a net sales at Rs.623 crore, up 17% (YoY). Its total expenses rose 11%, led by higher raw material costs, employee expenses and advertising and promotion expenses.But operating costs, as a percentage to total sales has come down from 88% to 82%.  Tax outgo burgeoned by 111%, it ended the quarter with a net profit at Rs.71 crore, up 45%.

Its paid-up equity capital is pretty small for a company of this size at Rs.10.40 crore, with reserves at Rs.1031 crore. Its 9M EPS is at Rs.127, giving an annualized EPS of Rs.170.

Godfrey Phillips India manufactures some of the most popular cigarette brands in the country and distributes iconic brand Marlboro under a license agreement with Philip Morris. It also sells other brands like FS1, Four Square, Red and White, Cavanders, Tipper and North Pole. In tea, it recently launched Symphony and Super Cup. It has also made a foray into the competitive confectionary segment with Fundamint and FundaGoli and it also launched Pan Vilas pan masala.