Dabur India (Q4 FY14)

India Infoline News Service | Mumbai |

Dabur has a unique mix of eight diverse growth engines in the FMCG space, which have a potential of delivering strong revenue growth.

CMP Rs179, Target Rs204, Upside 14% 
  • Dabur matched our expectations by recording healthy ~16% yoy revenue growth at Rs17.7bn during Q4 FY14

  • Domestic FMCG business revenues increased by 14% yoy driven by 9.4% yoy underlying volume growth while international business registered 20% yoy growth

  • Operating margins remained flat at 16.7% due to 20bps/40bps increase in raw material and advertising cost respectively

  • Adjusted net profit recorded 17% yoy growth at Rs2.4bn, in line with our expectations led by higher revenue growth and other income

  • We expect Dabur to witness a revenue/PAT CAGR of 15%/18% respectively over FY13-16. Maintain BUY with 9-mth price target of Rs204

Result table
(Rs m)
Q4 FY14
Q4 FY13
% yoy
Q3 FY14
% qoq
Net sales
17,690
15,311
15.5
19,043
(7.1)
Other operating income
54
55
(2.7)
50
7.6
Total income
17,744
15,366
15.5
19,093
(7.1)
Material cost
(7,014)
(6,143)
14.2
(7,583)
(7.5)
Purchase of FG
(1,567)
(1,255)
24.8
(1,692)
(7.4)
Advertising cost
(2,284)
(1,919)
19.0
(2,896)
(21.1)
Personnel cost
(1,529)
(1,283)
19.1
(1,580)
(3.3)
Other overheads
(2,397)
(2,201)
8.9
(2,366)
1.3
Operating profit
2,954
2,564
15.2
2,976
(0.7)
OPM (%)
16.7
16.7
(5) bps
15.6
108 bps
Depreciation
(263)
(207)
27.1
(255)
3.2
Interest
(137)
(150)
(8.6)
(72)
90.4
Other income
383
320
19.9
339
13.0
PBT
2,938
2,527
16.2
2,988
(1.7)
Tax
(582)
(507)
14.9
(546)
6.6
Effective tax rate (%)
19.8
20.1
-
18.3
BSE 344.10 [3.80] ([1.09]%)
NSE 345.75 [2.40] ([0.69]%)

***Note: This is a NSE Chart

 

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