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This Article is From May 07, 2023

Dabur India Q4 Results Review - Margins To Remain Under Pressure Going Into The Next Fiscal: Nirmal Bang

While margins are expected to improve gradually, we believe that it will take a couple of years to reach the historical average.

Dabur India Q4 Results Review - Margins To Remain Under Pressure Going Into The Next Fiscal: Nirmal Bang
Real fruit juices manufactured by Dabur Ltd. (Source: Company website)

BQ Prime's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer BQ Prime's subscribers an opportunity to expand their understanding of companies, sectors and the economy. 

Nirmal Bang Report

Dabur India Ltd.'s consolidated revenue grew by 6.4% YoY in Q4 FY23 with largely flat volume growth. Domestic business grew by 4.7% YoY while the International business grew by 1.4% YoY (9.6% in constant currency terms).

Consolidated gross margin contracted by 160 basis points YoY to 45.8% (up 30 bps QoQ). Standalone gross margin contraction of ~75 bps was on account of an adverse mix (35-40 bps) and higher consumer promotions.

Dabur India's ad spends saw a decline of 30 bps YoY (up by ~1% YoY on an absolute basis) along with lower employee cost (down 30 bps YoY). But, a sharp jump in other expenses (170 bps YoY) meant that Ebitda margin contracted by 270 bps YoY to 15.3% (down 470 bps QoQ).

Sales and Ebitda were broadly in-line with our estimates, but higher depreciation and interest led to a miss at the adjusted profit after tax level.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.

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