Dabur Q3 net profit seen up 26% at Rs 173 cr

Country's fourth largest FMCG company Dabur is set to announce its results for the quarter ended December 2010. According to CNBC-TV18 estimates, its net profit is expected to go up by 26% to Rs 172.7 crore in third quarter FY11 as against Rs 137 crore in same period the last year.

Net sales are seen going up by 15.7% to Rs 1,079 crore from Rs 932 crore. Earning before interest, tax, depreciation and amortisation (EBITDA) margin too is seen improving at 21.08% versus 20%.

Factors

-Analysts expect decent 12-14% volume growth
-Small expansion in EBITDA margin as lower ad spends will neutralize the impact of lower gross margin
-Growth in PAT expected to be limited due to higher tax rate in Q3
-Expect international biz to remain key profit driver for company
-Strong winter (October-December) will increase skin care sales for Co this quarter
-Expect strong headwinds in key categories of shampoo, skin care, oral care and hair oils
-Skin and hair care segments expected to account for 30% of Co