P&G - Q3FY2013 Result Update - Nirmal Bang

- The Q3FY13 result was broadly in line with market estimates.

- The company's Net Sales increased by 27.7% YoY to Rs. 416.6 crs and down by 11.5% QoQ. The growth in sales YoY was driven by category growth (feminine care was up by 39% YoY plus Old spice recorded Rs. 15 crs of sales in its first month after takeover whereas health care segment recorded flat growth), pricing and strong market initiative.

- EBITDA increased by 9.4% to Rs. 65.5 crs and was flat QoQ . EBITDA margin of the company declined by 260bps YoY to 15.7% in Q3FY13 and up by 20bps QoQ. The EBITDA margin YoY was down due to the jump in raw-material cost, royalty cost and employee expenses as a % of sales.

- PAT of the company was flat YoY to Rs. 52.1 crs and down by 3.5% QoQ. The margin fell by 350bps YoY to 12.5% in Q3FY13 and by 150bps QoQ. The decline in PAT margin is due to the jump in depreciation cost and jump in tax rate. Tax rate stood at 28.7% in Q3FY13 as against 23.4% in Q3FY12 and 25.7% in Q2FY13.

Source : Equity Bulls

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