Godfrey Phillips

Godfrey Phillips posted a set of very good numbers for Q1FY15. It posted a net sales at Rs.683 crore, up 14% (YoY). A reduction in employee cost, advertising and promotion charges helped bring down the overall operating costs of the company for current Q1. Operating cost as a percentage of net sales was down at 85%, down from 93% in previous Q1. Tax outgo for the quarter was up almost 8 times (YoY) and sequentially, it was up 69%.

Its paid-up equity capital is pretty small for a company of this size at Rs.10.40 crore, with reserves at Rs.1153 crore. The company is splitting the face value of its equity shares from Rs.10/share to Rs.2/share. The FY15 Budget increased excise duty on cigarettes in the range of 11 to 72% and this is sure to have a bearing on the financial performance of the company during rest of the quarters.

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.