Dabur India Q1 PAT seen up 14% at Rs 122 cr

Dabur India is to announce its first quarter results. According to CNBC-TV18's estimates, the company's Q1FY12 net sales are seen up 27% at Rs 1166 crore versus Rs 916.5.

Its EBITDA is seen up 23% at Rs 169 crore versus Rs 137 crore.

Its PAT is seen up 14% at Rs 122 crore versus Rs 107 crore.

The company's EBITDA margins is seen down 14.4% versus 14.9%.

The company's PAT margins is seen down 10.4% versus 11.6%.

Factors

Expect Dabur India to report net sales of Rs11.6bn up 27% YoY with 8% volume growth

The higher sales growth is due to the consolidation of Hobi Kozmetik and Namaste acquisitions for the full quarter

Estimate organic sales growth of ~13% impacted by pressure on Middle East and Egypt sales and a high base of 17% volume growth in the base quarter

Pressure on margins will sustain following higher commodity costs

As recent softening in raw material prices will benefit margin with lag

Shampoo market share loss is a key concern

Estimate 11.6% PAT growth to Rs122cr impacted by higher depreciation and a higher tax charge (up 130bp)

Company announced the acquisition of OTC energizer brand 30+ from Ajanta Pharma- do not expect material impact of this acquisition on financials

Stiff competition in Dabur