Views on Dabur 3QFY2014 results - Angel Broking

Views of Mr. V. Srinivasan (Research Analyst - FMGC, Angel Broking) on Dabur 3QFY2014 results:

"For 3QFY2014 Dabur results were below estimates on the Operating profit and bottom-line front. The company's consolidated net sales rose 16.8% yoy to Rs. 1,904cr aided by volume growth of 9.2% and price hikes undertaken by the company. Domestic FMCG business grew by 14% yoy, aided by strong growth in health supplements (up 19.5% yoy), digestive (up 17.7% yoy) and home care segments (up 16% yoy). International business grew by 26% yoy aided by good performance in GCC, Egypt and Nigeria. OPM fell by 115bp yoy to 15.4% due to higher advertising (up 80bp yoy) and staff costs (up 76bp yoy). As per the management, advertising expenses rose on account of new product launches such as Dabur Ratnaprash, Vatika Enriched Oilve Hair Oil, Odonil 1 Touch Air Fresheners and a new herbal shampoo for the South market. Net Profit stood at Rs. 244cr up 15.4% on yoy basis. We maintain a neutral rating on the stock."

Source : Equity Bulls

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