What is your view on the quarterly results of Dabur Ltd for Dec-21 quarter?
Answer
Answer
Dabur reported 7.8% higher sales for the Dec-21 quarter at Rs.2,942 crore. The predominant consumer care business saw sales grow 4.1% at Rs.2,543 crore while food business sales were up 39% at Rs.329 crore. The consumer care business sales were hit by weak rural market demand. Retail and miscellaneous verticals reported higher sales but were not significant in overall revenue mix. International business grew by 8.7% on a yoy basis.
Dabur Ltd
Rs in Crore
Dec-21
Dec-20
YOY
Sep-21
QOQ
Total Income (Rs cr)
₹ 2,941.75
₹ 2,728.84
7.80%
₹ 2,817.58
4.41%
EBITDA (Rs cr)
₹ 564.30
₹ 517.02
9.14%
₹ 557.38
1.24%
Net Profit (Rs cr)
₹ 503.32
₹ 492.02
2.30%
₹ 504.35
-0.20%
Diluted EPS (Rs)
₹ 2.84
₹ 2.78
₹ 2.85
EBITDA Margin
19.18%
18.95%
19.78%
Net Margins
17.11%
18.03%
17.90%
Operating profits were up 9.14% yoy at Rs.564 crore in Q3. However, the inflation impact was fairly severe 13% during the quarter which offset most of the price hikes. While operating profit of the consumer care business was up 5%, food business saw doubling of operating profits. For the Dec-21 quarter, operating margins were marginally higher from 18.95% in Dec-20 to 19.18% in Dec-21 quarter. OPM was sequentially lower by 60 bps.
Net Profits for the Dec-21 quarter was up just about 2.3% at Rs.503.32 crore in the Dec-21 quarter. While the higher operating costs were an issue, they did not dent operating margins. The bottom line saw a hit from the surge in taxes in the quarter which actually led to lower growth in net profits.
PAT margins fell from 18.03% in the Dec-20 quarter to 17.11% in the Dec-21 quarter on lower profit growth. PAT margins were lower on a sequential basis by 79 bps.