Dabur reported consolidated revenue, ebitda and adjusted PAT growth of 17%, 14% and 15% versus MSe of 16%, 25% and 19%, respectively. Domestic business posted revenue, operating profit and PAT growth of 13%, 15% and 16%, respectively. Strong comments from management post results are likely to drive the stock higher, in our view.
Strong volume growth outlook for the domestic FMCG business at 10-12% for FY15 premised on urban growth picking up, and management is currently investing in creating urban infrastructure to cater to such growth. Even if urban growth does not pick up, management expects 8-10% volume growth.