Company Update :Cello World Ltd by Motilal Oswal Financial Services Ltd
Earnings miss estimates
* Consol. revenue remained largely flat YoY, while it declined 5% QoQ to INR5.5b (est. INR6.1b).
* Gross margins contracted 10bp YoY to 49.6%, while they remained flat QoQ. ? EBITDA declined ~17%/17% YoY/QoQ to INR1.1b (est. INR1.4b). EBITDA margins contracted 380bp/260bp YoY/QoQ to 19.1%.
* Adj. PAT declined ~20%/19% YoY/QoQ to INR692m (est. INR903m).
* The company had a labor code impact of INR74m.
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