Dabur India reports 16.6% Net Income growth and 0.52 pp EBITDA Margin growth from 16.3% to 16.8%
05-05-2015 • About Dabur India (
$DABUR) • By InTwits
Dabur India reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Dabur India has medium CAPEX intensity: 5 year average CAPEX/Revenue was 7.5%. At the same time it's a lot of higher than industry average of 5.7%.
- CAPEX is quite volatile: 2,670 in FY2015, 2,154 in FY2014, 2,410 in FY2013, 2,327 in FY2012, 9,313 in FY2011
- The company has highly profitable business model: ROIC is at 31.3%
- It operates with medium-size leverage: Net Debt/EBITDA is 0.5x while industry average is 0.5x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Dabur India ($DABUR) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 41,045 | 53,054 | 61,691 | 70,944 | 78,272 | 10.3% |
| SG&A | 6,326 | 7,668 | 9,636 | 11,548 | 12,809 | 10.9% |
| EBITDA | 7,673 | 8,598 | 9,878 | 11,564 | 13,164 | 13.8% |
| Net Income | 5,686 | 6,449 | 7,634 | 9,139 | 10,658 | 16.6% |
Balance Sheet
|
|---|
| Cash | 2,767 | 4,143 | 1,185 | 3,084 | 625 | -79.7% |
| Short Term Debt | 3,336 | 3,901 | 7,177 | 4,477 | 5,230 | 16.8% |
| Long Term Debt | 7,174 | 7,272 | 5,399 | 2,604 | 2,106 | -19.1% |
Cash flow
|
|---|
| Capex | 9,313 | 2,327 | 2,410 | 2,154 | 2,670 | 24.0% |
Ratios
|
|---|
| Revenue growth | -56.2% | 29.3% | 16.3% | 15.0% | 10.3% | |
| EBITDA growth | 23.1% | 12.1% | 14.9% | 17.1% | 13.8% | |
| EBITDA Margin | 18.7% | 16.2% | 16.0% | 16.3% | 16.8% | 0.5% |
| Net Income Margin | 13.9% | 12.2% | 12.4% | 12.9% | 13.6% | 0.7% |
| SG&A, % of revenue | 15.4% | 14.5% | 15.6% | 16.3% | 16.4% | 0.1% |
| CAPEX, % of revenue | 22.7% | 4.4% | 3.9% | 3.0% | 3.4% | 0.4% |
| ROIC | 36.5% | 29.4% | 28.7% | 30.8% | 31.3% | 0.5% |
| ROE | 48.9% | 41.5% | 40.0% | 38.5% | 35.5% | -3.0% |
| Net Debt/EBITDA | 1.0x | 0.8x | 1.2x | 0.3x | 0.5x | 0.2x |
Revenue and profitability
Dabur India's Revenue jumped on 10.3% in FY2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased slightly on 1.2 pp from 20.9% to 19.7% in FY2015.
SG&A as a % of Revenue showed almost no change in FY2015.
Net Income marign increased slightly on 0.73 pp from 12.9% to 13.6% in FY2015.
Capital expenditures (CAPEX) and working capital investments
Dabur India's CAPEX/Revenue was 3.4% in FY2015. Dabur India's CAPEX/Revenue decreased slightly on 0.97 pp from 4.4% in FY2012 to 3.4% in FY2015. Average CAPEX/Revenue for the last three years was 3.5%.
Return on investment
The company operates at high and attractive ROIC (31.33%) and ROE (35.47%). ROIC increased slightly on 0.53 pp from 30.8% to 31.3% in FY2015. ROE decreased on 3.0 pp from 38.5% to 35.5% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 0.5x and Debt / EBITDA is 0.6x. Net Debt / EBITDA surged on 0.2x from 0.3x to 0.5x in FY2015. Debt increased on 3.6% in FY2015 while cash dropped on 79.7% in FY2015.
Management team
Dabur India's CEO is Sunil Duggal. Sunil Duggal has 17 years tenure at the company. Dabur India's CFO is Lalit Malik. Lalit Malik has 6 years tenure at the company.
Appendix 1: Peers in Personal Products
Below you can find Dabur India benchmarking vs. other companies in Personal Products industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Procter & Gamble Hygiene & Health Care ($PGHH) | -65.3% | 29.4% | 29.9% | 21.5% | |
| Godrej Consumer Products ($GODREJCP) | | 32.0% | 31.7% | 18.6% | 8.7% |
| Colgate-Palmolive (India) ($COLPAL) | -55.8% | 17.8% | 17.5% | 13.1% | |
| Hindustan Unilever ($HINDUNILVR) | -60.1% | 17.0% | 14.5% | 8.4% | |
| Emami ($EMAMILTD) | -53.7% | 16.6% | 16.9% | 7.2% | |
| |
|---|
| Median (7 companies) | -58.0% | 22.4% | 17.5% | 8.4% | 15.5% |
|---|
| Dabur India ($DABUR) | | 29.3% | 16.3% | 15.0% | 10.3% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Emami ($EMAMILTD) | 21.8% | 20.9% | 20.5% | 24.3% | |
| Bliss Gvs Pharma ($BLISSGVS) | | 27.2% | 28.1% | 20.9% | |
| Procter & Gamble Hygiene & Health Care ($PGHH) | 16.6% | 16.3% | 15.4% | 20.7% | |
| Colgate-Palmolive (India) ($COLPAL) | 22.6% | 21.7% | 21.0% | 18.6% | |
| Hindustan Unilever ($HINDUNILVR) | 14.0% | 15.2% | 16.0% | 16.6% | |
| |
|---|
| Median (7 companies) | 17.2% | 18.1% | 16.0% | 18.6% | 15.4% |
|---|
| Dabur India ($DABUR) | 18.7% | 16.2% | 16.0% | 16.3% | 16.8% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Bliss Gvs Pharma ($BLISSGVS) | | 8.7% | 5.0% | 16.7% | |
| Colgate-Palmolive (India) ($COLPAL) | 1.8% | 3.8% | 4.9% | 9.0% | |
| Procter & Gamble Hygiene & Health Care ($PGHH) | 5.5% | 4.2% | 2.2% | 7.2% | |
| Emami ($EMAMILTD) | 4.0% | 8.0% | 5.0% | 3.6% | |
| Hindustan Unilever ($HINDUNILVR) | 1.7% | 1.2% | 1.7% | 2.1% | |
| |
|---|
| Median (7 companies) | 4.7% | 3.8% | 4.9% | 3.6% | 1.8% |
|---|
| Dabur India ($DABUR) | 22.7% | 4.4% | 3.9% | 3.0% | 3.4% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Hindustan Unilever ($HINDUNILVR) | 96.0% | 99.9% | 114.4% | 133.0% | |
| Colgate-Palmolive (India) ($COLPAL) | 134.8% | 121.4% | 120.4% | 104.4% | |
| Emami ($EMAMILTD) | 28.2% | 31.5% | 36.7% | 43.3% | |
| Procter & Gamble Hygiene & Health Care ($PGHH) | 25.2% | 28.1% | 30.3% | 43.2% | |
| Marico ($MARICO) | 25.9% | 23.2% | 22.6% | 26.9% | 36.1% |
| |
|---|
| Median (9 companies) | 25.7% | 25.6% | 30.3% | 26.9% | 27.4% |
|---|
| Dabur India ($DABUR) | 36.5% | 29.4% | 28.7% | 30.8% | 31.3% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Bliss Gvs Pharma ($BLISSGVS) | | 0.0x | 1.1x | 1.9x | |
| Godrej Consumer Products ($GODREJCP) | 2.7x | 1.6x | 1.7x | 1.5x | 1.7x |
| Cupid ($CUPID) | 2.2x | 1.7x | 0.5x | 1.4x | |
| Marico ($MARICO) | 1.4x | 1.5x | 1.3x | 0.9x | 0.3x |
| Hindustan Unilever ($HINDUNILVR) | -0.6x | -0.3x | -0.1x | -0.2x | |
| |
|---|
| Median (8 companies) | 0.6x | 0.5x | 0.2x | 0.3x | 1.0x |
|---|
| Dabur India ($DABUR) | 1.0x | 0.8x | 1.2x | 0.3x | 0.5x |
