Dabur India

Dabur India posted a set of very strong numbers for Q2FY14. It posted a 23% (YoY) rise in consolidated net profit at Rs.250 crore on a 15% growth in net sales at Rs.1749 crore.  Consolidated EBITDA increased 24% at Rs.352 crore and margins rose 144 bps to 20.1% v/s 18.7% in Q2FY13 supported by lower material costs.

65% of its business came from domestic sales and 35% from international sales, mainly in markets of MENA and Bangladesh, driven by hair care products.  Health supplements grew 17% (YoY) driven by Dabur Honey, Home Care grew 25%, Oral Care driven by toothpaste and toothpowders grew 19% and skin care  rose 17%.  Food segment rose 22% with Real Fruits juice growing in rural India too. Retail business was up 17% at Rs.17 crore and other businesses declined 51% at Rs.33 crore. Compared to the pressures shown by FMCG companies, this desi company has done pretty well. The company has ended H1FY14 with a net profit at Rs.436 crore v/s Rs.763 crore for FY13. If the same trend or better as in Q2 continues, prospects of which are bright given the good monsoon, the company could end FY14 on a much higher note.