Dabur India Ltd. | Q3FY15 Result Update | In-line with expectations, urban demand revival would be key to future performance; Maintain HOLD rating on the stock with PT of Rs 244 ::IndiaNivesh

Please Share::

�� India Equity Research Reports, IPO and Stock News Visit http://indiaer.blogspot.com/ for complete details ��

��

-->
Dabur India Ltd reported Q3FY15 results which were in-line with consensus estimates. Net sales of the company increased 9.2% yoy to reach Rs 20736 mn in Q3FY15 from 18996 mn in Q3FY14 (vs consensus est: Rs 21450 mn). This was led by domestic FMCG business which grew by 11.7% yoy while international business grew by a meagre 2.6% yoy (3.6% yoy on constant currency basis). Domestic business registered volume growth of 7.4%. During the quarter, gross margin expanded 117 bps at 52.3% against 51.2% in Q3FY14. EBITDA grew 18.3% yoy to reach Rs 3519 mn in Q3FY15 against Rs 2976 mn in Q3FY14. EBITDA margin expanded 131 bps yoy to reach 17% in Q3FY15 from 15.7% in Q3FY14. This expansion in margin is on account of benign input cost and lower growth in other expenses. PAT increased 16.4% yoy to reach Rs 2828 mn in Q3FY15 from Rs 2429 mn in Q3FY14. PAT growth was relatively lower than EBITDA growth on account of higher depreciation (20.9% yoy), interest (32.7% yoy) and taxation (21.5% yoy) costs. Effective tax rate of the company increased to 18.9% in Q3FY15 against 18.3% in Q3FY14. For 9mFY15, net sales grew 10.8% yoy at Rs 58616 mn against Rs 52901 mn in 9mFY14. EBITDA grew 12.3% yoy to reach Rs 9708 mn from Rs 8645 mn in 9mFY14. EBITDA margin expanded 22 bps yoy to reach 16.6%. PAT grew 14.9% yoy to reach Rs 781 mn from Rs 6800 mn in 9mFY14. PAT growth was higher on account of higher other income (26.5% yoy) and reduction in interest cost (26.3% yoy). Double digit growth across most of the sectors Consumer care business, contributing 86.4% to total sales, grew 8% yoy in Q3FY15 driven by growth across categories. Health supplements grew at 13.5% yoy driven by Glucose and Honey. Digestives category grew at 11.6% yoy. OTC and Ethicals portfolio grew by 8.8% yoy in Q3FY15 driven by ethicals portfolio which grew by double digit. Haircare portfolio reported 12.1% yoy growth in Q3FY15 wherein hair oils grew by 12% yoy driven by coconut oils and shampoo registered strong growth of 12.8% yoy driven by volumes. Home care category grew by 16.2% yoy in Q3FY15 driven by Odomos. Skincare grew 4% yoy in Q3FY15 due to supply constraints in Fem Bleach. Oral Care grew by 11.3% yoy in Q3FY15 with toothpastes growing by 19% yoy led by Red Toothpaste and Meswak. Foods business grew by 11.8% yoy in Q3FY15 with Real fruit juices growing at 12.4% yoy. The growth rate was impacted by seasonality due to shift in Diwali sales to Q2FY15 as against third quarter of previous year. International business grew 2.6% yoy International business grew by 2.6% yoy in Q3FY15 with 3.6% constant growth rates. Organic international business grew 16% yoy with constant currency growth of 16.8% yoy. This was driven by GCC (14% yoy), Egypt (29% yoy), Turkey (15% yoy) and Levant (17% yoy) markets. Namaste business was under pressure (and might have de-grown) due to category slowdown in the US and price corrections undertaken leading to pipeline correction across geographies.

LINK
http://www.indianivesh.in/Admin/Upload/635585537659172500_Dabur%20India_Q3FY15%20Result%20Update.pdf