Dabur India Q3FY14 Consolidated PAT Grows By 15%

On the consolidated basis, Dabur India posted revenue of Rs 1909 crore witnessing a growth of 16.7% on YoY basis for the quarter ended December 2013. The growth in the topline can be attributed to strong growth seen in the International Business. Dabur's International Business ended the Quarter with a 26% growth, led by strong performance in GCC, Egypt and Nigeria. Net profit rose by 15% on YoY basis for Q3FY14 to stand at Rs 243 crore as against Rs 210.49 crore for Q3FY13. The bottomline got impacted and the growth was below street estimates of 17%.

What has also played a deterrent when we look at the performance of the stock on the bourses is that the volume growth of the FMCG Company stood at 9% as against the street expectation of 10%.

On the operations front, EBITDA grew by 13.58% on YoY basis to stand at Rs 297 crore and the EBITDA margin came in at 15.58% witnessing a decline of 43 basis points on YoY basis. Advertising-spends climbed 23.2% to Rs 290 crore on YoY basis and as a percentage of sales it rose by 80 basis points to 15.17% on YoY basis. There has been a jump on the employee cost also which grew by 29% on YoY basis to Rs 158 crore. The company has also declared an interim dividend of Rs 0.75 for the quarter.

However, going forward, the management has indicated that it is seeing renewed growth in the urban business which is indeed a positive sign. On the segmental front, consumer care witnessed a growth of 17.66% to stand at 1663.33 crore. In this segment, health supplements grew at a robust pace of 19.5% for the quarter. The digestives and home care rose by 17.7% and 16% respectively for Q3FY14. In the supplement business Dabur Chyawanprash performed well with strong growth across regions and channels. A new premium health supplement offering Dabur Ratnaprash is also launched during the quarter and has received good response so far. The Hair Care portfolio reported growth of 7% and Shampoo portfolio grew by 25%. Perfumed Hair oil category reported growth of 8% while coconut oils continued to remain subdued for the quarter.

Odonil and Sanifresh have performed well for the quarter and the home care segment grew by 16%. Skin Care reported 13.4% growth in Q3FY14. Oral Care grew by 10.4% in Q3FY14. Foods grew well at 18% in Q3FY14, with secular growth across channels and regions.

The fall in price in today's session according to us is a temporary one and the fundamental strength of the company remains intact.