Dabur India Net Income surged on 17.5% and Revenue increased on 8.0%
28-04-2016 • About Dabur India (
$DABUR) • By InTwits
Dabur India reported FY2016 financial results today. Here are the key drivers of the company's long term financial model:
- Dabur India is a fast growth stock: FY2016 revenue growth was 8.0%, 5 year revenue CAGR was 15.5% at FY2016 ROIC 29.5%
- EBITDA Margin is relatively stable: 18.0% in FY2016 vs. 16.8% in FY2015 vs. 16.2% in FY2012
- Dabur India has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.5%. At the same time it's in pair with industry average of 3.6%
- CAPEX is quite volatile: ₹2,811m in FY2016, ₹4,488m in FY2015, ₹9,924m in FY2014, ₹5,139m in FY2013, ₹6,186m in FY2012
- The company has highly profitable business model: ROIC is 29.5%
- It operates with high leverage: Net Debt/EBITDA is 0.4x while industry average is 0.1x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Dabur India's Revenue increased on 8.0%. Revenue decline was accelerating on average at -4.8 pp per annum in the last 5 years. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 6.6 pp from 6.1% to -0.47% in FY2016. EBITDA Margin followed a growing trend at 0.43 pp per annum in FY2012-FY2016.
SG&A as a % of Revenue showed almost no change in FY2016. SG&A as a % of Revenue stuck to a growing trend at 0.54 pp per annum in FY2012-FY2016.
Net Income margin increased slightly on 1.2 pp from 13.6% to 14.8% in FY2016. Net Income margin stuck to a growing trend at 0.66 pp per annum in the last 5 years.
Investments (CAPEX, working capital and M&A)
The company's CAPEX/Revenue was 2.6% in FY2016. The company's CAPEX/Revenue decreased slightly on 1.3 pp from 3.9% in FY2013 to 2.6% in FY2016. It's average CAPEX/Revenue for the last three years was 3.0%. CAPEX as a % of Revenue stuck to a declining trend at -0.41 pp per annum in FY2012-FY2016.
Return on investment
The company operates at high and attractive ROIC (29.5%) and ROE (33.3%). ROIC decreased slightly on 1.9 pp from 31.3% to 29.5% in FY2016. ROE decreased on 2.1 pp from 35.5% to 33.3% in FY2016. ROE declined at -2.1 pp per annum in the last 5 years.
Leverage (Debt)
Company's Net Debt / EBITDA is 0.4x and Debt / EBITDA is 0.5x. Net Debt / EBITDA decreased on 0.1x from 0.5x to 0.4x in FY2016. Debt increased on 7.9% while cash jumped on 111%.
Dabur India has short term refinancing risk: cash is only 29.3% of short term debt.
Management team
The company's CEO is Sunil Duggal. Sunil Duggal has 19 years tenure with the company. Lalit Malik is a the company's CFO. Lalit Malik has spent 7 years at the company.
Financial and operational results
Dabur India ($DABUR) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 53,054 | 61,691 | 70,944 | 78,272 | 84,540 | 8.0% |
| SG&A | 7,668 | 9,636 | 11,548 | 12,809 | 14,187 | 10.8% |
| EBITDA | 8,598 | 9,878 | 11,564 | 13,164 | 15,198 | 15.4% |
| Net Income | 6,449 | 7,634 | 9,139 | 10,658 | 12,527 | 17.5% |
Balance Sheet
|
|---|
| Cash | 4,143 | 1,185 | 3,084 | 625 | 1,317 | 110.7% |
| Short Term Debt | 3,901 | 7,177 | 4,477 | 5,230 | 4,497 | -14.0% |
| Long Term Debt | 7,272 | 5,399 | 2,604 | 2,106 | 3,415 | 62.2% |
Cash flow
|
|---|
| Capex | 2,327 | 2,410 | 2,154 | 2,670 | 2,170 | -18.8% |
Ratios
|
|---|
| Revenue growth | 29.3% | 16.3% | 15.0% | 10.3% | 8.0% | |
| EBITDA growth | 12.1% | 14.9% | 17.1% | 13.8% | 15.4% | |
|
|---|
| EBITDA Margin | 16.2% | 16.0% | 16.3% | 16.8% | 18.0% | 1.2% |
| SG&A, % of revenue | 14.5% | 15.6% | 16.3% | 16.4% | 16.8% | 0.4% |
| Net Income Margin | 12.2% | 12.4% | 12.9% | 13.6% | 14.8% | 1.2% |
| CAPEX, % of revenue | 4.4% | 3.9% | 3.0% | 3.4% | 2.6% | -0.8% |
|
|---|
| ROIC | 29.4% | 28.7% | 30.8% | 31.3% | 29.5% | -1.9% |
| ROE | 41.5% | 40.0% | 38.5% | 35.5% | 33.3% | -2.1% |
| Net Debt/EBITDA | 0.8x | 1.2x | 0.3x | 0.5x | 0.4x | -0.1x |
Peers in Personal Products
Below we provide Dabur India benchmarking against other companies in Personal Products industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Bajaj Corp ($BAJAJCORP) | - | 28.2% | 10.7% | 22.9% | 6.2% |
| Marico ($MARICO) | 26.9% | 15.5% | 2.0% | 22.3% | - |
| Emami ($EMAMILTD) | 16.6% | 16.9% | 7.2% | 21.8% | - |
| Bliss Gvs Pharma ($BLISSGVS) | - | 48.5% | -13.1% | 17.0% | - |
| Procter & Gamble Hygiene & Health Care ($PGHH) | 29.4% | 29.9% | 21.5% | 13.9% | - |
| |
|---|
| Median (8 companies) | 22.4% | 22.8% | 9.6% | 15.4% | 6.2% |
|---|
| Dabur India ($DABUR) | - | 16.3% | 15.0% | 10.3% | 8.0% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Bajaj Corp ($BAJAJCORP) | 24.6% | 28.4% | 27.7% | 29.0% | 31.2% |
| Cupid ($CUPID) | - | - | - | 28.9% | - |
| Bliss Gvs Pharma ($BLISSGVS) | 27.2% | 28.1% | 20.9% | 25.7% | - |
| Emami ($EMAMILTD) | 20.9% | 20.5% | 24.3% | 25.0% | - |
| Procter & Gamble Hygiene & Health Care ($PGHH) | 16.3% | 15.4% | 20.7% | 21.3% | - |
| |
|---|
| Median (10 companies) | 19.5% | 18.3% | 19.7% | 21.0% | 31.2% |
|---|
| Dabur India ($DABUR) | 16.2% | 16.0% | 16.3% | 16.8% | 18.0% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Colgate-Palmolive (India) ($COLPAL) | 3.8% | 4.9% | 9.0% | 7.5% | - |
| Bliss Gvs Pharma ($BLISSGVS) | 8.7% | 5.0% | 16.7% | 7.0% | - |
| Emami ($EMAMILTD) | 8.0% | 5.0% | 3.6% | 5.0% | - |
| Procter & Gamble Hygiene & Health Care ($PGHH) | 4.2% | 2.2% | 7.2% | 3.4% | - |
| Cupid ($CUPID) | - | - | - | 3.0% | - |
| |
|---|
| Median (9 companies) | 4.0% | 4.5% | 5.4% | 3.0% | 1.9% |
|---|
| Dabur India ($DABUR) | 4.4% | 3.9% | 3.0% | 3.4% | 2.6% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Hindustan Unilever ($HINDUNILVR) | 99.9% | 114.4% | 133.0% | 133.9% | - |
| Colgate-Palmolive (India) ($COLPAL) | 121.4% | 120.4% | 104.4% | 99.9% | - |
| Bajaj Corp ($BAJAJCORP) | - | 36.9% | 36.2% | 46.5% | 54.8% |
| Emami ($EMAMILTD) | 31.5% | 36.7% | 43.3% | 45.4% | - |
| Procter & Gamble Hygiene & Health Care ($PGHH) | 28.1% | 30.3% | 43.2% | 40.1% | - |
| |
|---|
| Median (10 companies) | 25.6% | 30.4% | 31.6% | 40.1% | 54.8% |
|---|
| Dabur India ($DABUR) | 29.4% | 28.7% | 30.8% | 31.3% | 29.5% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Godrej Consumer Products ($GODREJCP) | 1.6x | 1.7x | 1.5x | 1.7x | - |
| Bliss Gvs Pharma ($BLISSGVS) | 0.0x | 1.1x | 1.9x | 1.4x | - |
| Marico ($MARICO) | 1.5x | 1.3x | 0.9x | 0.3x | - |
| Cupid ($CUPID) | 1.7x | 0.5x | 1.4x | -0.1x | - |
| Hindustan Unilever ($HINDUNILVR) | -0.3x | -0.1x | -0.2x | -0.2x | - |
| |
|---|
| Median (9 companies) | 0.2x | -0.0x | -0.2x | -0.2x | -0.2x |
|---|
| Dabur India ($DABUR) | 0.8x | 1.2x | 0.3x | 0.5x | 0.4x |
