ICICIdirect.com has come out with its October-December qurater earnings estimates for the FMCG sector. The brokerage house expects Dabur India to report a 4 percent growth quarter-on-quarter (up 23.7 percent Y-o-Y) in net profit at Rs 260.4 crore.
Sales of Dabur India are expected to increase by 7.8 percent Q-o-Q (up 15.6 percent Y-o-Y) to Rs 1885.6 crore, according to ICICIdirect.com.
Earnings before interest, tax, depreciation and amortisation (EBITDA) are likely to rise by 2.3 percent Q-o-Q (up 22.7 percent Y-o-Y) to Rs 336.9 crore.
ICICIdirect.com on Dabur India:
We expect domestic revenue (65 percent of revenues) growth at 11 percent and int'l revenue growth at 20 percent. Volume growth in domestic business would moderate to 7-8 percent against 9-10 percent in H1FY14. During the quarter, growth would remain strong in health supplements (15 percent), home care (17 percent) and foods (21 percent) but remain lower for hair care (7 percent), oral care (4 percent), digestives (9 percent) and skin care (9 percent). Marketing spends would remain higher at 14.3 percent (flat Y-o-Y) restricting margin expansion to 100 bps Y-o-Y at 17.8 percent. Margin expansion would be supported by higher price increases (5-6 percent) by the company in Q3FY14.
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