Dabur’s Q2 net profit seen 3.5% higher at Rs 369 cr; vol growth around 6% likely

Dabur is likely to post a net profit growth of 3.5 percent at Rs 369 crore against Rs 357.3 crore reported during the same quarter last year, a poll of analysts conducted by CNBC-TV18 has revealed.

The total income could rise by 4 percent at Rs 2,061 crore against Rs 1,981.6 crore year on year.

At an operating level, the earnings before interest, taxes, depreciation and amortisation (EBITDA) is likely to rise 3 percent at Rs 421 crore against Rs 408.7 crore year on year. Meanwhile, the operating margin is seen at 20.4 percent against 20.6 percent.

For the quarter, volume growth could be around 6 percent on the back of GST-related restocking. The management has guided band 5-10 percent volume growth in FY18. Meanwhile, the international business is likely to remain weak on the back of adverse currency fluctuations and geo political issues in the Middle East.

Experts also recommend watching out for exceptional provisions as last quarter, it made a one-time loss of Rs 14.5 crore due to provisions made for GST.

The fast-moving consumer goods major reported 10 percent drop in its consolidated net profit for the June quarter at Rs 265 crore against Rs 293.6 crore posted during the same period last year.

It must be noted that there was a one-time loss of Rs 14.5 crore due to the provisions made for goods and services tax (GST). The consolidated revenue was reported at Rs 1,790 crore, down 8.3 percent from Rs 1,952 crore posted during the June quarter last year.

On an operating level, the earnings before interest, taxes, depreciation and amortisation (EBITDA) was reported at Rs 309 crore, down 11 percent against Rs 349 crore in the same quarter last fiscal. The operating margin was 17.2 percent against 17.9 percent in the previous year.

At the close of market hours, Dabur India was quoting at Rs 321.45, down Rs 1.00, or 0.31 percent, on the BSE.