Result Analysis: Dabur India Limited (CMP: Rs.553.90) Result Update: Q3FY23

Dabur India Limited is one of India’s leading FMCG Companies. Building on a legacy of quality and experience for 138 years, Dabur is today India’s most trusted name and one of the world’s largest Ayurvedic and Natural Health Care Company. Today, Dabur India’s FMCG portfolio includes eight distinct Power Brands: Dabur Chyawanprash, Dabur Honey, Dabur Honitus, Dabur PudinHara and Dabur Lal Tail in the Healthcare space; Dabur Amla and Dabur Red Paste in the Personal care category; and R6al in the Foods & Beverages category.

Stock Details
Market Cap. (Cr.) 98138
Equity (Cr.) 177.18
Face Value 1
52 Wk. high/low 610/ 482
BSE Code 500096
Book Value (Rs.) 49.72
Sector FMCG
Key Ratios
Debt-equity: 0.10
ROCE (%): 26.05
ROE (%): 21.72
TTM EPS: 9.96
P/BV: 11.14
TTM P/E: 55.61


Financial Performance:


Shareholding Pattern:



Result Highlights:

  • Total Consolidated Revenue of Dabur grew marginally by 3.45% on YoY basis and on QoQ basis by 1.90% to Rs. 3,013.47 in Q3FY23, despite a highly challenging cost and operating environment.
  • Company has clocked PAT of Rs. 65 cr. in the Dec. quarter, showing de-growth of 2.89% QoQ and 5.61% YoY. The PAT margin of the company shrunk sequentially by 78 bps and 148 bps on YoY basis to 15.66%.
  • EBITDA margin of the company also shrunk sequentially by 89 bps and 127 bps on YoY basis to 23.35%.
  • On segment front Home Care, Foods, Ayurvedic OTC, and Digestives segments showed robust growth of 18.2%, 34.5%, 16.8% and 11.2% respectively. Whereas Oral Care, Shampoo, and Beverages business grew marginally by 2.6%, 3.6% and 3.7%
  • However the company showed de-growth in Hair Oils, and Skin & Salon business by 2.4% and 5.6% respectively.
  • Dabur posted market share gains across the portfolio, led by a 250bps improvement in Juices & Nectars, a 70bps market share gain in Hair Oils to touch the highest-ever 16.2%, and Chyawanprash, Shampoo improved by 30bps, and 40bps respectively.
  • Dabur’s International Business reported a growth of 14% in CC terms. The Turkey, Egypt, Sub-Saharan Africa, and SAARC businesses grew by 97%, 35%, 17%, and 8% respectively.

Managerial commentary:

  • Dabur India Ltd Chief Executive Officer Mr. Mohit Malhotra said. “We have delivered steady results in what continues to be a difficult cost and operating environment. We continued to adjust prices responsibly to reflect inflation, Our India business reported a growth of 3.3% with a 3-year CAGR of 9.5% and steady market share gains across portfolio, despite most operating categories reporting a decline. The impact of inflationary pressures was more pronounced in the rural markets as marked downtrading and shift to more affordable and smaller packs led to rural growth lagging urban markets for the second quarter in a row for Dabur. However, we believe that this demand slump in rural has bottomed out as we are now seeing some green shoots of revival in demand in the hinterland.”


Dabur reported tepid results in the December quarter of FY23 with marginal growth in revenue of 3.45% on YoY basis and de-growth in pat margins by 148bps on YoY basis, which was mainly due to highly challenging cost because of inflationary pressures which was mostly seen in the rural area. However rural demand is reporting a smart recovery on the back of a record farm output and increased government spending. For the 9MFY23 Dabur has reported the earnings of Rs.7.94 and we expect the company to close the FY23 at the eEPS of Rs.9.92. Based on the estimated earnings the company is available at PEx of 55.83 at the CMP.


Particulars (In Rs. Cr.) Q3FY23 Q2FY23 Q3FY22      QoQ %          YoY% 9MFY23 9MFY22          YoY%
Revenue from Operations 3,043.17 2,986.49 2,941.75 1.90% 3.45% 8,852.09 8,370.87 5.75%
Other Income 100.84 123.28 96.74 -18.20% 4.24% 324.67 294.02 10.42%
Total Income 3,144.01 3,109.77 3,038.49 1.10% 3.47% 9,176.76 8,664.89 5.91%
Cost of material consumed 1,169.59 1,316.57 1,101.15 -11.16% 6.22% 3,860.14 3,467.73 11.32%
Purchase of stock in trade 360.87 288.87 325.76 24.92% 10.78% 902.75 773.34 16.73%
Change in inventories 127.70 25.93 92.67 392.48% 37.80% 54.75 75.36 -27.35%
Employee benefits expense 290.81 287.56 273.02 1.13% 6.52% 848.26 800.88 5.92%
Advertisement and Publicity 179.64 151.80 237.07 18.34% -24.22% 488.64 627.61 -22.14%
Other Expenses 304.68 315.02 284.58 -3.28% 7.06% 943.27 825.71 14.24%
EBITDA 710.72 724.02 724.24 -1.84% -1.87% 2,078.95 2,094.26 -0.73%
EBITDA Margin (%) 23.35% 24.24% 24.62% -89 bps -127 bps 23.49% 25.02%  -153 bps
Finance Cost 18.91 15.06 11.08 25.56% 70.67% 46.12 26.85 71.77%
Depreciation & Amortization expense 70.89 70.47 63.20 0.60% 12.17% 208.96 187.84 11.24%
Share of profit/(loss) in associated and JV -0.76 -0.34 -0.11 123.53% 590.91% -1.44 -0.60 140.00%
Profit Before Tax 620.16 638.15 649.85 -2.82% -4.57% 1,822.43 1,878.97 -3.01%
Tax 143.51 147.29 145.50 -2.57% -1.37% 413.86 431.01 -3.98%
Profit After Tax 476.65 490.86 504.35 -2.89% -5.49% 1,408.57 1,447.96 -2.72%
PAT Margin (%) 15.66% 16.44% 17.14% -78 bps -148 bps 15.91% 17.30% -139 bps
EPS (in Rs.) 2.69 2.77 2.85 -2.89% -5.61% 7.94 8.17 -2.82%
Segment Income (In Cr.) Q3FY23 Q2FY23 Q3FY22 QoQ % YoY% 9MFY23 9MFY22 YoY% Segment %
Consumer Care Business 2,618.04 2,410.92 2,543.23 8.59% 2.94% 7,164.86 7,098.61 0.93% 86.03%
Food Business 352.47 499.14 329.00 -29.38% 7.13% 1,460.39 1,101.38 32.60% 11.58%
Retail Business 31.62 26.19 27.49 20.73% 15.02% 83.48 54.93 51.98% 1.04%
Other Segments 31.40 40.78 32.67 -23.00% -3.89% 114.16 92.70 23.15% 1.03%
Unallocated other operating revenue 9.64 9.46 9.36 1.90% 2.99% 29.20 23.25 25.59% 0.32%
Total 3,043.17 2,986.49 2,941.75 1.90% 3.45% 8,852.09 8,370.87 5.75% 100.00%

Source: Company website, EWL Research

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