Despite a 22% increase in net profit compared to same period last year (or yoy), HSIL has negatively surprised the street with its third quarter results. The decline in EBITDA margin due to the unfavourable product mix is one reason for this, while HSIL channelising the benefit from the fall in fuel cost towards increased advertising and distribution is another.
HSIL is India’s largest sanitaryware player with around 40% market share in organised trade with strong brand equity and distribution network. Since the unorganised sector still contributes around 60% in terms of sanitaryware and 55% in faucets, HSIL should be able to increase its overall market share in the coming years. Although the segment is under pressure in the short ter…
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