Result Review 4QFY2013

Godrej Consumer

Godrej Consumer posted a healthy 29.7% yoy growth in top-line which was in-line with estimates. However, the 271bp yoy decline in OPM was a disappointment. OPM fell despite the fall in palm oil prices (a key raw material in soap manufacturing) on account of higher A&P expenses which went up by 120bp on a yoy basis. Recurring PAT rose by 22% yoy to `205cr, which was slightly below estimates. Source: AngelBroking

Dabur India

Dabur delivered healthy set of numbers for 4QFY2013. Net sales rose by 12.3% yoy. OPM rose by 121bp yoy and stood at 17%. The most positive aspect of the result is the 12% yoy volume growth posted by the company’s domestic consumer business (highest in the eleven straight quarters) despite the slowdown witnessed in FMCG sector. The company’s international business rose by 17% yoy led by strong performance in GCC, Bangaladesh and Levant markets. Bottom-line rose by 17.6% yoy to `201cr and was in-line with estimates. Source: AngelBroking

GSK Consumer

GSK Consumer posted a 15.6% yoy growth in top-line to `940cr. OPM rose by 200bp yoy to 22%, aided by higher prices. Bottom-line rose by 18.5% yoy to `156cr and was above our estimates.Source: AngelBroking

Marico

Marico’s consolidated top-line grew by 9.7% yoy growth in top-line to `997cr led by volume growth of 8%. The company’s domestic FMCG business (incl. the acquired youth brands) posted growth of 12%, with the volume growth coming in at 14%. However, the international FMCG business posted a de-growth of 1% mainly due to the poor performance of GCC markets. OPM stood at 12.1%, flat on a yoy basis, but below our estimates due to higher other expenses. Recurring PAT rose by a marginal 1% on a yoy basis.Source: AngelBroking

TVS Motor

For 4QFY2013, TVS Motor Company (TVSL) reported weak operating performance led by continued EBITDA margin pressures which declined 60bp on a sequential basis. However, the adjusted bottom-line at `58cr (adjusted for exceptional charge) was ahead of our estimates led by 53% decline in interest cost, which was the only positive surprise in the quarterly results. The interest cost declined as the company repaid loans worth `170cr during the quarter. TVSL recorded an exceptional charge of `92cr in 4QFY2013 towards provisioning for diminution in the value of its European subsidiary, TVS Motor Company (Europe). As a result of this, the company reported a bottom-line loss of `33cr. The top-line for the quarter, declined by 2.8% qoq to `1,748cr due to a 1.8% qoq decline in volumes led by the slowdown in the two-wheeler industry and increasing competition. The net average realization too registered a decline of 1.3% qoq on  account of adverse product-mix. On the operating front, EBITDA margin posted a decline of ~60bp qoq led by increase in other expenditure which could be probably on account of higher marketing spends and increase in power and distribution expenses. At `38, TVSL is trading at 6.6x FY2015E earnings.Source: AngelBroking