Dabur India slides as Q2 EBITDA margin declines

Dabur India fell 2.15% to Rs 129.80 on BSE after the company's earnings before interest taxes depreciation and amortization, or EBITDA, margin declined in Q2 September 2012. The company announced the results during trading hours today, 26 October 2012. Meanwhile, the BSE Sensex fell 133.29 points or 0.71%, to 18,625.34. On BSE, 3.74 lakh shares were traded in the counter as against average daily volume of 1.32 lakh shares in the past one quarter. The stock hit a high of Rs 135.80 and a low of Rs 127.25 so far during the day. The stock had hit a record high of Rs 138.65 on 16 October 2012. The stock had hit a 52-week low of Rs 92.05 on 1 February 2012. The stock had outperformed the market over the past one month till 25 October 2012, surging 6.42% compared with the Sensex's 0.34% rise. The scrip had also outperformed the market in past one quarter, jumping 14.8% as against Sensex's 11.35% rise. The large-cap company has equity capital of Rs 174.29 crore. Face value per share is Re 1. Dabur India's consolidated net profit rose 16.39% to Rs 202.37 crore on 21.15% growth in total income to Rs 1550.08 crore in Q2 September 2012 over Q2 September 2011. The company's EBITDA margin declined to 19.2% in Q2 September 2012 from 20.5% in Q2 September 2011. Dabur India said a combination of innovation, relentless market development initiatives and stronger growth across key categories like health supplements, shampoos, food, skin care and home care aided revenue growth in Q2 September 2012. Commenting on the results, Dabur India's Chief Executive Officer, Mr. Sunil Duggal said: "The rising cost pressures were managed through a mix of judicious price increases and improved buying efficiencies. Despite signs of an economic downturn and increased competitive intensity in the market, Dabur India has maintained strong growth momentum and continues to register sales growth ahead of the market in several key categories. We remain on course to strengthen our brand portfolio, improve our competitiveness in the market place and deliver profitable growth." The company said the shampoo category continued to move forward on its strong growth trajectory and ended the quarter with a 40.2% growth, while the Skin Care business - riding on Fem - reported a near 25% growth. The Home Care business ended the quarter with a 23% growth while the Health Supplements business grew by 15.7%. The quarter saw Dabur launch a host of new products and variants across geographies, all of which have received good response, the company said in a statement. Dabur's International Business recorded a growth of 24.8% during the second quarter, led by robust performance in GCC, Egypt and Nigeria. "Hair Care and Toothpastes were the key growth drivers for Dabur in the international markets," Dabur India Group Director Mr. P D Narang said. Dabur India is one of India's leading FMCG companies. The company is also a world leader in ayurveda with a portfolio of over 250 herbal/ayurvedic products. Dabur today operates in key consumer products categories like hair care, oral care, health care, skin care, home care and foods.