Dabur - 3QFY2013 Result Review - Nirmal Bang

Consolidated Net Revenue grew by 12.3% YoY at Rs. 1630.7 crores and was up by 7.1% QoQ basis. Domestic business remained steady with 14% YoY revenue growth driven by ~9.5% volume growth & ~3.5% due to pricing/mix. The organic international business posted a healthy 16%/22% YoY growth in constant currency/INR terms respectively.

EBITDA was up by 18.4% YoY to Rs. 274.5 cr and marginally up by 1.9% QoQ. The margins were 16.8% in Q3FY13 as against 16% in Q3FY12 and 17.7% in Q2FY13. The improvement in margin was led by a sharp improvement in gross margins, primarily driven by >500bps expansion in the international business despite higher ad spends (up 76bps YoY) and staff costs (up 48bps YoY).

The Adj. Net profit grew by 22.2% YoY to Rs. 211.1 crores in Q2FY13 and by 4.3% QoQ. The PAT margin was 12.9% in Q3FY13 as against 11.9% in Q3FY12 and 13.3% in Q4FY12. The PAT grew due to the fall in finance cost by 57.5% YoY and jump in Other income 73.2% YoY.

Outlook is positive.

Source : Equity Bulls

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