Independent Research Analyst

Mamta Verma

DC India Research

DC India Research LLP (DCIR) is based out of Mumbai, India.

We specialize in providing customized, independent research across listed and unlisted companies in India across equities and credit including sectoral research. Our customers include India focussed PE funds, special situation funds, domestic AMCs, Wealth Advisory& PMS firms, Rating Agencies & Investment Advisors. 

The DCIR board consists of prominent names from the industry as well as CIO’s of Hedge funds.

Equity Bottom-Up

JHS Svendgaard Laboratories / Equity Bottom-Up

Q4FY18 Consolidated Results <table class="table table-striped">
<thead><tr>
<td>(Rs. Mn.)</td>
<td>Q4FY17</td>
<td>Q3FY18</td>
<td>Q4FY18</td>
<td>FY17</td>
<td>FY18</td>
</tr></thead>
<tbody>
<tr>
<td>Net Sales </td>
<td>275</td>
<td>438</td>
<td>378</td>
<td>1,055</td>
<td>1,426</td>
</tr>
<tr>
<td>YoY (%)</td>
<td>7.7%</td>
<td>92.8%</td>
<td>37.4%</td>
<td>5.4%</td>
<td>35.2%</td>
</tr>
<tr>
<td>QoQ (%)</td>
<td>21.1%</td>
<td>40.1%</td>
<td>-13.7%</td>
</tr>
<tr>
<td>Raw Material</td>
<td>164</td>
<td>271</td>
<td>234</td>
<td>691</td>
<td>889</td>
</tr>
<tr>
<td>as % of net sales</td>
<td>59.7%</td>
<td>61.9%</td>
<td>61.8%</td>
<td>65.5%</td>
<td>62.3%</td>
</tr>
<tr>
<td>Employee Costs</td>
<td>22</td>
<td>41</td>
<td>38</td>
<td>86</td>
<td>121</td>
</tr>
<tr>
<td>as % of net sales</td>
<td>7.9%</td>
<td>9.3%</td>
<td>10.0%</td>
<td>8.2%</td>
<td>8.5%</td>
</tr>
<tr>
<td>YoY (%)</td>
<td>4.5%</td>
<td>91.7%</td>
<td>74.8%</td>
<td>19.0%</td>
<td>40.6%</td>
</tr>
<tr>
<td>Opex &amp; Mfg. exp</td>
<td>56</td>
<td>76</td>
<td>67</td>
<td>177</td>
<td>279</td>
</tr>
<tr>
<td>as % of net sales</td>
<td>20.4%</td>
<td>17.3%</td>
<td>17.8%</td>
<td>16.8%</td>
<td>19.5%</td>
</tr>
<tr>
<td>Total OPEX</td>
<td>242</td>
<td>388</td>
<td>339</td>
<td>954</td>
<td>1,289</td>
</tr>
<tr>
<td>as % of net sales</td>
<td>88.0%</td>
<td>88.6%</td>
<td>89.7%</td>
<td>90.4%</td>
<td>90.4%</td>
</tr>
<tr>
<td>YoY (%)</td>
<td>3.7%</td>
<td>101.3%</td>
<td>40.1%</td>
<td>1.9%</td>
<td>35.1%</td>
</tr>
<tr>
<td>Core EBITDA </td>
<td>33</td>
<td>50</td>
<td>39</td>
<td>101</td>
<td>1…</td>
</tr>
</tbody>
</table>

 Q4FY18 Consolidated Results 

(Rs. Mn.)
Q4FY17
Q3FY18
Q4FY18
FY17
FY18



Net Sales 
275
438
378
1,055
1,426


YoY (%)
7.7%
92.8%
37.4%
5.4%
35.2%


QoQ (%)
21.1%
40.1%
-13.7%


Raw Material
164
271
234
691
889


as % of net sales
59.7%
61.9%
61.8%
65.5%
62.3%


Employee Costs
22
41
38
86
121


as % of net sales
7.9%
9.3%
10.0%
8.2%
8.5%


YoY (%)
4.5%
91.7%
74.8%
19.0%
40.6%


Opex &amp; Mfg. exp
56
76
67
177
279


as % of net sales
20.4%
17.3%
17.8%
16.8%
19.5%


Total OPEX
242
388
339
954
1,289


as % of net sales
88.0%
88.6%
89.7%
90.4%
90.4%


YoY (%)
3.7%
101.3%
40.1%
1.9%
35.1%


Core EBITDA 
33
50
39
101
1…




JHS Svendgaard – 35% Topline Growth and 2x PBT in FY18 – Maintain Investment Thesis

JHS Svendgaard – Above expectation Q3 FY18 Results, led by strong topline growth &amp; GPM expansion<table class="table table-striped"><tbody>
<tr>
<td>Particulars (Rs. Mn.)</td>
<td>Q1FY18</td>
<td>Q2FY18</td>
<td>Q3FY18</td>
<td>9MFY17</td>
<td>9MFY18</td>
</tr>
<tr>
<td>Net Sales</td>
<td>274</td>
<td>313</td>
<td>438</td>
<td>775</td>
<td>1,025</td>
</tr>
<tr>
<td>YoY (%)</td>
<td>14.6%</td>
<td>1.2%</td>
<td>92.8%</td>
<td>4.0%</td>
<td>32.2%</td>
</tr>
<tr>
<td>QoQ (%)</td>
<td>-1.9%</td>
<td>14.1%</td>
<td>40.1%</td>
</tr>
<tr>
<td>GROSS PROFIT</td>
<td>85</td>
<td>107</td>
<td>167</td>
<td>270</td>
<td>358</td>
</tr>
<tr>
<td>Gross Profit Margin (%)</td>
<td>30.9%</td>
<td>34.1%</td>
<td>38.1%</td>
<td>34.8%</td>
<td>34.9%</td>
</tr>
<tr>
<td>YoY (%)</td>
<td>14.8%</td>
<td>10.3%</td>
<td>67.2%</td>
<td>46.2%</td>
<td>32.6%</td>
</tr>
<tr>
<td>QoQ (%)</td>
<td>-20.8%</td>
<td>25.8%</td>
<td>56.5%</td>
</tr>
<tr>
<td>Total Operating Expenses</td>
<td>261</td>
<td>278</td>
<td>388</td>
<td>692</td>
<td>926</td>
</tr>
<tr>
<td>as % of net sales</td>
<td>95.1%</td>
<td>88.8%</td>
<td>88.6%</td>
<td>89.2%</td>
<td>90.4%</td>
</tr>
<tr>
<td>YoY (%)</td>
<td>18.1%</td>
<td>-0.2%</td>
<td>101.0%</td>
<td>-1.6%</td>
<td>33.9%</td>
</tr>
<tr>
<td>QoQ (%)</td>
<td>2.3%</td>
<td>6.6%</td>
<td>39.7%</td>
</tr>
<tr>
<td>Core EBITDA</td>
<td>1…</td>
</tr>
</tbody></table>

JHS Svendgaard – Above expectation Q3 FY18 Results, led by strong topline growth &amp; GPM expansion

Particulars (Rs. Mn.)
Q1FY18
Q2FY18
Q3FY18
9MFY17
9MFY18


Net Sales
274
313
438
775
1,025


YoY (%)
14.6%
1.2%
92.8%
4.0%
32.2%


QoQ (%)
-1.9%
14.1%
40.1%


GROSS PROFIT
85
107
167
270
358


Gross Profit Margin (%)
30.9%
34.1%
38.1%
34.8%
34.9%


YoY (%)
14.8%
10.3%
67.2%
46.2%
32.6%


QoQ (%)
-20.8%
25.8%
56.5%


Total Operating Expenses
261
278
388
692
926


as % of net sales
95.1%
88.8%
88.6%
89.2%
90.4%


YoY (%)
18.1%
-0.2%
101.0%
-1.6%
33.9%


QoQ (%)
2.3%
6.6%
39.7%


Core EBITDA
1…



JHS Svendgaard - Very Strong Q3-FY18 Results. Re-Iterate Our Investment Thesis.

Q2 FY18 Results<ul>
<li>Net sales were flat YoY but 12% up QoQ.</li>
<li>Gross margins improved by 120bps YoY and 160bps QoQ.</li>
<li>Sharp jump in EBITDA margins, from 5% in Q1FY18 to 13.7% in Q2FY18 vs. 10% in Q2FY18 mainly propelled by benefits of operating leverage.</li>
<li>Q1FY18 PAT included one-time settlement income (Rs 27.3 crore) from its earlier customer – P&amp;G – after a prolonged arbitration. Excluding the same, PAT increased from Rs. 2mn in Q1FY18 to Rs. 23mn in Q2FY18.</li>
<li>Overall, strong set of results along our lines of…</li>
</ul>

 Q2 FY18 Results
Net sales were flat YoY but 12% up QoQ.
Gross margins improved by 120bps YoY and 160bps QoQ.
Sharp jump in EBITDA margins, from 5% in Q1FY18 to 13.7% in Q2FY18 vs. 10% in Q2FY18 mainly propelled by benefits of operating leverage.
Q1FY18 PAT included one-time settlement income (Rs 27.3 crore) from its earlier customer – P&amp;G – after a prolonged arbitration. Excluding the same, PAT increased from Rs. 2mn in Q1FY18 to Rs. 23mn in Q2FY18.
Overall, strong set of results along our lines of…


JHS Svendgaard - Strong Op'al Perf Q2FY18; High Conviction with Twin Levers of Earnings & Re-Rating

<h2>Ø  Background &amp; Business </h2>JHS Svendgaard started as a small-scale enterprise called Sunehari Svendgaard Laboratories Limited in August 1997 and was incorporated as JHS Svendgaard Laboratories Limited in October 2004. The company got listed on the Indian stock exchanges in 2006. It is a contract manufacturer of oral care products (Toothbrush, Toothpaste, Mouthwash), Laundry Detergent, Hand Sanitizer, Room Freshener and Denture Tablets for Indian and global FMCG players. It also has its own…

Ø  Background &amp; Business JHS Svendgaard started as a small-scale enterprise called Sunehari Svendgaard Laboratories Limited in August 1997 and was incorporated as JHS Svendgaard Laboratories Limited in October 2004. The company got listed on the Indian stock exchanges in 2006. It is a contract manufacturer of oral care products (Toothbrush, Toothpaste, Mouthwash), Laundry Detergent, Hand Sanitizer, Room Freshener and Denture Tablets for Indian and global FMCG players. It also has its own…

JHS Svendgaard: Marquee Clientele Successful Turnaround, Debt-Free BS Trigger from In-House Brands

India

JHS Svendgaard Laboratories Ltd. manufactures and sells oral hygiene products. The Company's products include tooth brushes, toothpastes, tongue cleaners, and whitening gels.

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JHS Svendgaard Laboratories (JHSL IN)

JHS Svendgaard – 35% Topline Growth and 2x PBT in FY18 – Maintain Investment Thesis

Q4FY18 Consolidated Results Consolidated Balance Sheet We spoke with the promoter – Mr. Nikhil Nanda at JHS – our key takeaways are as follows...

DC India Research

JHS Svendgaard - Very Strong Q3-FY18 Results. Re-Iterate Our Investment Thesis.

JHS Svendgaard – Above expectation Q3 FY18 Results, led by strong topline growth & GPM expansionNote - results just announced - no details for...

DC India Research

JHS Svendgaard - Strong Op'al Perf Q2FY18; High Conviction with Twin Levers of Earnings & Re-Rating

Q2 FY18 Results Net sales were flat YoY but 12% up QoQ. Gross margins improved by 120bps YoY and 160bps QoQ. Sharp jump in EBITDA margins, from 5%...

DC India Research

JHS Svendgaard: Marquee Clientele Successful Turnaround, Debt-Free BS Trigger from In-House Brands

Ø Background & Business JHS Svendgaard started as a small-scale enterprise called Sunehari Svendgaard Laboratories Limited in August 1997 and...

DC India Research

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