Dear All,
Forwarding you the Result Flash on Dabur for 4QFY2011 with a Neutral recommendation.
”Top-line above estimates, high tax rate, depreciation and interest expenses curb bottom line”
CMP: `100 Recommendation: Neutral Target Price: -
| Exhibit 1: Quarterly Summary | |||||
| (` cr) | 4QFY11 | 4QFY10 | % yoy | Angel Est | % Diff |
| Revenue | 1,108.2 | 848.6 | 30.6 | 1,025.6 | 8.1 |
| EBITDA | 205.6 | 161.9 | 27.0 | 202.5 | 1.5 |
| OPM (%) | 18.6 | 19.1 | (53) | 19.8 | (120) |
| Adj. PAT | 147.0 | 135.5 | 8.5 | 154.7 | (5.0) |
Source: Company, Angel Research; Note: Our estimates did not include financials from recent acquisitions
Dabur posted a mixed set of numbers for the quarter. While top-line growth was above our estimates at 30.6% yoy primarily driven by volume growth (~10% domestic volume growth), earnings grew at 8.5% yoy below our estimates due a sharp rise in tax rate, interest and depreciation expenses. At the operating front, Dabur recorded a margin contraction of 53bp yoy due high other expenses (up 445bps yoy). In terms of segmental performance – CCD registered a growth of 36.6% yoy, CHD grew 12.1% yoy and Foods business posted a growth of 9.4% yoy for the quarter. The gross sales also include the income from Hobi and Namaste entities.
| Exhibit 2: Quarterly Financial Update | ||||||
| Y/E March (` cr) | 4QFY11 | 4QFY10 | % chg | FY2011 | FY2010 | % chg |
| Net Sales | 1,108.2 | 848.6 | 30.6 | 4,077.4 | 3,390.5 | 20.3 |
| Consumption of RM | 489.0 | 384.3 | 27.2 | 1,905.3 | 1,550.8 | 22.9 |
| (% of Sales) | 44.1 | 45.3 | 46.7 | 45.7 | ||
| Staff Costs | 91.5 | 75.4 | 21.3 | 322.2 | 284.7 | 13.2 |
| (% of Sales) | 8.3 | 8.9 | 7.9 | 8.4 | ||
| Advertising | 127.4 | 115.6 | 10.2 | 534.6 | 493.5 | 8.3 |
| (% of Sales) | 11.5 | 13.6 | 13.1 | 14.6 | ||
| Other Expenses | 194.7 | 111.3 | 74.9 | 560.7 | 432.4 | 29.7 |
| (% of Sales) | 17.6 | 13.1 | 13.8 | 12.8 | ||
| Total Expenditure | 902.6 | 686.7 | 31.5 | |||
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