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Last Updated : Jan 31, 2019 09:53 AM IST | Source:

Dabur Q3 preview: Brokerages expect steady quarter; global biz may see modest growth

The company will declare its results on January 31, 2019.

Moneycontrol News @moneycontrolcom

Dabur India is likely to post steady financials for the December quarter, with volume growth seen around 7-10 percent.

The company will declare its results on January 31, 2019.

Here is a gist of what brokerages are saying about the results:

Brokerage: Edelweiss | Profit: Rs 359.7 crore

Edelweiss expects domestic volume growth of 9.5-10 percent YoY on a base of 13 percent.

It expects juice segment to perform well due to festive shift in the third quarter of this fiscal. International business could be muted owing to slower growth in GCC as well as translation impact of Turkish business. Overall ad spends may remain elevated which will lead to some compression in EBITDA margins.

Brokerage: Emkay | Profit: Rs 370.4 crore

Domestic sales growth is estimated at 10 percent on 8 percent volume growth. Competitive activity remains higher in hair oil and oral care. Foods segment may report slower growth despite a delayed festive season.

International business could grow 8 percent, impacted by currency depreciation (Turkey) and slow recovery in the GCC. Higher overheads (especially employee cost due to ESOPs) would arrest margin expansion,” analysts at the firm wrote in their report.

Brokerage: ICICI Securities | Profit: Rs 381.5 crore

The company is expected to post healthy revenue growth of 13.6 percent YoY driven by domestic sales growth of 12.7 percent (volume growth of ~8 percent). We expect this growth to be to be broad-based, well supported by strong demand from rural regions.

International operations may see better growth of 16.2 percent on a favourable base (Q3FY18 saw de-growth of 9.1 percent). We expect EBITDA margins to remain flat at 20.6 percent YoY due to an increase in commodity price inflation. PAT is estimated to increase 14.6 percent YoY to Rs 381.5 crore.

Brokerage: Kotak Institutional Equities | Profit: Rs 370.7 crore

The brokerage is modelling around 12 percent YoY growth in domestic revenues, a combination of 10 percent volume growth and 2 percent realization improvement. Growth will be driven by HPC segment, it said.

International business revenue growth would be modest 6-7 percent in c/c terms partly due to continued weakness in the GCC region.

Brokerage: Motilal Oswal | Profit: Rs 332.1 crore

Motilal Oswal sees gross margin contracting 100 bps to 50.6 percent led by material cost inflation.

Brokerage: Prabhudas Lilladher | Profit: Rs 366.3 crore

It estimates 7.5 percent volume growth on a high base. Margin expansion looks unlikely due to input cost inflation.

Key issues to watch for

-Domestic volume growth and outlook for rural demand

-New launch pipeline

-Margin performance in international business

First Published on Jan 31, 2019 09:53 am
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