Dabur India Posts Decent Q4FY13 Numbers

Dabur India (DIL), one of the leading FMCG companies in India, saw its topline increase by 12.28% on a yearly basis to Rs 1531 crore. The growth was primarily driven by better volumes growth of 12.3%, highest in the last 11 quarters in the domestic FMCG business, which forms 70% of its entire business. Its international business reported growth of 11.6%.

If we analyse the segment-wise sales of DIL, its consumer care business, foods business and retail business have grown at 13% to Rs 1289 crore, 19% to Rs 192 crore and 29% to Rs 15 crore respectively. Under the consumer care business, home care and health supplements saw best growth of 33% and 22% respectively on a yearly basis.

The EBITDA of DIL for Q4FY13 increased by 21.6% on a yearly basis to Rs 295.9 crore whereas the EBITDA margin in the same period has expanded to 19.3% in Q4FY13 from 17.8% in Q4FY12. The reason for the margin expansion is a reduction in cost of raw material as percentage of sales to 48.3% at the end of Q4FY13 from 50.2% at the end of Q4FY12. There was a marginal decrease in advertising and publicity expenses that helped in improving the margins.

The above factors have led to the company’s growth in its consolidated profit after tax by 17.6% to Rs 200.5 crore. The Board of Directors have recommended a final dividend of 85%, which brings the total dividend for the year to 150%. The current price of the company discounts its FY13 net earnings of Rs 4.38 per share by 33.74 times which makes it fairly valued.