InvestorCommunication

Quarter and Half Year ended 30th September,

2016
October26,2016

DemandSlowdown:UnderlyingFactors
IndexofIndustrialProduction
10

0
4

Sourcesofincomehavebeenaffectedin
recentmonthswhichhasledtoaslowdown
indemand

FMCGIndustryTrends
CPI:RuralandUrbanTrend

SlowdowninFMCGcategory
growthrates

Enhancedpromotionsacross
categories

Continuedstressinruraldemand

Source:MOSPI

FinancialHighlightsQ2FY17
Revenue*
1,955.3

Q2FY16

1,975.7

Q2FY17

OperatingProfit*

404.3

Q2FY16

408.7

Q2FY17

PAT*
340.2

Q2FY16

357.3

Q2FY17

Consolidated sales grew by 1% and PAT by 5%

India Standalone business reported topline growth of 2.3% with profit
growth of 17.7%
Domestic FMCG Business grew by 2.4% driven by volume growth of 4.5%
inspite of a stressed demand environment
International business witnessed a slowdown due to geo political
disturbances in the MENA region and adverse currency impact
*ConsolidatedBusiness 4

FinancialAnalysisQ2FY17
1,955.3

1,975.7

Consolidated sales grew by 1%

1%

Revenue*
(InRs.Crs)

Q2FY16
404.3

Domestic FMCG Business reported growth

of 2.4% driven by volume growth of 4.5%
International business reported a decline of
2.3% as per IND AS

Q2FY17
408.7
1.1%

Operating
Profit*
(InRs.Crs)

Operating margin remained stable at 20.7%

in Q2FY17
Material Costs were at 49% of sales in
Q2FY17 vs 48.7% in Q2FY16

Q2FY16
340.2

Adpro stood at 7.6% in Q2FY17 compared to

8.5% in Q2FY16

Q2FY17
357.3

Consolidated PAT grew by 5%

5%

PAT**
(InRs.Crs)

Q2FY16
*ConsolidatedBusiness

Depreciation and interest costs increased due

to Capex
Higher other income & tax rate

Q2FY17

**Afterminorityinterest

5
PAT Margins increased to 18.1% in Q2FY17
from 17.4% in Q2FY16

BusinessOverviewQ2FY17
SalesContribution*
Others
3%
DomesticFMCG
CategoryBreakup

International
34%

Foods
21%

Digestives
5%

SkinCare
5%
OralCare
16%

Domestic
FMCG
63%

Health
Supplements
15%

OTC&
Ethicals
9%
HairCare
21%

HomeCare
8%
InternationalSalesGrowthRates

Domestic FMCG Business reported growth

of 2.4% driven by volume growth of 4.5%

2.4%

International Business declined by 2.3%

basis IND AS
DomesticFMCG

International

2.3%

International Business contributed to 34% of

consolidated sales
6
*OthersincludesRetail

CategoryHighlightsIndia

HomeandPersonalCare

HPC comprising Oral Care, Hair Care, Home Care and Skin Care reported volume growth of 6% while
growth in value terms was 1.6%.

Oral care category including toothpowder was flattish in value terms. However volume growth for
the category was 11%. Toothpaste portfolio clocked 4% value growth driven by good growth in Red
and Meswak Toothpaste. This was off a high base of 28% growth in Q2FY16.

Home care category reported good growth of 20% in value terms led by strong double digit growth
in Odomos and Odonil. Visibility initiatives, print and TV campaigns and increased demand due to
mosquito based diseases fueled sales.

Skin care posted 7% growth with the Bleach portfolio growing by 10.5%. Fem Gold Ultra Bleach and
OxyLife Tan Clear Facial kit launched during the quarter.

Shampoo registered 2.7% growth. Trade Activation Programme Vatika Maha Munafa working well
for the brand.

Hair Oils were under pressure mainly due to decline in hair oil category and high base of 14.3%
growth in Q2FY16. Dabur Almond & Sarson Amla hair Oils grew in double digits.
8

InnovationinHome&PersonalCare

OxySalonProfessional:TANClear

DaburBrahmi Amla HairOil

FemGoldUltraBleach

Healthcare
The Healthcare portfolio comprising of Health Supplements, Digestives, OTC & Ethicals declined by
3.7%.
Honey was flattish in volume terms on a high base of 32.5% growth during Q2FY16. Honey portfolio
extended with the launch of Dabur Honey Ginger
.

Pre season sales of Chyawanprash were low in anticipation of new promotional and media inputs
starting next month.

Honitus Hot Sip A herbal infusion for Cough and Cold added to the Honitus Range

In the Digestives category Hajmola Tablets clocked high single digit growth. Hajmola Amrud Tablet has
been added to the portfolio

Continued focus on Medical marketing Ethicals portfolio clocked 11.3% growth

10

InnovationinHealthcare
Honitus andHoneyportfolioextendedwithinnovativeofferings
Honitus HotSipSachet
Cough&ColdRemedy

Honitus HotSipSticks
Cough&ColdRemedy

DaburHoneyGinger

11

Foods
Foodsbusinessregisteredstronggrowthof15.2%inQ2FY17
MarketshareinJ&Ncategorybacktolastyearlevelsinspiteofincreasing
competitiveactivity
Enhancedvisibilityinitiativestocapitalizeonthefestiveseasonopportunity
VariantextensionsplannedintheBeveragesandCulinaryrange
Beverages:EnhancedVisibilityInitiatives

12

KeyInitiativesdrivinggrowthinJuices

Continuous
media&
visibility

200mlFocus

Consumer
Promotions

FSFocus

NPDFocus

13

InternationalBusiness Q2FY17
International Business declined by 2.3% in Q2FY17. However, as per the old
accounting standards of IGAAP the business clocked low single digit growth
Sharp currency devaluation in Naira, Lira and Egyptian Pound impacted growth
GCC markets were impacted by geo political disturbances and economic slowdown
particularly in Saudi Arabia
SAARC business performed well with Nepal and Pakistan growing in strong double
digits
Hobi and Namaste performed well and clocked high single digit growth
LocalCurrencyGrowthRate
19.0%

19.0%
13.7%
9.6%

8.0%

14

Egypt

Nepal

Turkey

US

Pakistan

Namaste:Localisation inAfrica
Manufacturingfacilitiescommissionedandcommercialised inEgyptandNigeria

Egypt:
Cairo

RelaxerKitsORS&Argan
SheenSpray ORS&Argan
ORSOils
Shampoo&ConditionerRange
HairNourishmentRange

Nigeria:
Lagos

SheenSpray ORS&Argan
ORSOils
Shampoo&ConditionerRange
HairNourishmentRange

ThirdPartymanufacturer

SouthAfrica:
Johannesburg

RelaxerKitsORS&Argan
SheenSpray ORS&Argan
ORSOils
Shampoo&ConditionerRange
HairNourishmentRange15

InternationalNPDs
Vatika ShampooRelaunch

Vatika StandToughStylingGel

Dermoviva DeepPore
CleansingWipes

16

IGAAPvs INDASReco Q2FY17

Consolidated
Particulars

GrossSales*asperIGAAP

RevenueNetting

GrossSales*asperIndAS

*inclusiveofExciseDuty

Q2FY17

Q2FY16

India

Gr%

Q2FY17

Q2FY16

Gr%

2,161.0

2,114.4

2.2%

1,434.6

1,414.3

1.4%

185.2

158.4

16.9%

86.5

96

9.9%

1,975.7

1,956.0

1.0%

1,348.1

1,318.4

2.3%

17

InterimDividend
The Board of Directors have declared an Interim Dividend at
125% (Rs.1.25 per share) aggregating Rs.265.01 crore
including tax
4th November, 2016 has been fixed as the record date for
payment of Interim dividend

18

ConsolidatedP&L
DIL(Consolidated)P&L inRs.crores
Sales
OtherOperatingIncome

Q2FY17
1,975.7
5.9

Q2FY16
1,955.3
4.1

YoY (%)
1.0%
42.4%

H1FY17
3,923.4
10.4

H1FY16
3,877.2
9.5

YoY (%)
1.2%
9.6%

MaterialCost

967.4

952.3

1.6%

1928.8

1919.4

0.5%

%ofSales

49.0%

48.7%

49.2%

49.5%

EmployeeExpense

215.8

200.6

427.3

389.7

%ofSales

10.9%

10.3%

10.9%

10.1%

Advertising&Publicity
%ofSales

149.4

165.7

345.9

390.4

7.6%

8.5%

8.8%

10.1%

OtherExpenses

240.3

236.5

474.3

461.9

%ofSales

12.2%

12.1%

12.1%

11.9%

OperatingProfit
%ofSales
OtherNonOperatingIncome

408.7
20.7%
89.2

404.3
20.7%
55.8

60.0%

757.5
19.3%
150.3

725.3
18.7%
103.5

45.2%

497.9

460.0

8.2%

907.7

828.8

9.5%

21.4%
24.3
65.3
739.2
136.4
602.8
1.0

17.1%
7.3%
9.5%
15.4%
8.1%

0.30
602.1
15.5%

8.0%

EBITDA
%ofSales
FinanceCosts
Depreciation&Amortization
ProfitBeforeTax(PBT)
TaxExpenses
PAT(before minorityinterest)
MinorityInterest Profit/(Loss)
Shareofprofit/(loss)ofassociates&joint
venture
PAT(AfterMinorityInt)
%ofSales

7.6%

9.8%
1.6%

1.1%

25.2%
16.6
35.7
445.6
87.3
358.2
1.1

23.5%
12.5
32.8
414.8
74.4
340.3
0.0

33.1%
9.0%
7.4%
17.3%
5.3%

23.1%
28.4
70.1
809.3
157.4
651.8
1.9

0.09
357.3
18.1%

0.07
340.2
17.4%

5.0%

0.15
650.1
16.6%

9.7%

11.4%
2.7%

4.4%

19

StatementOfAssetsandLiabilities
Particulars

A
1

ASSETS
Non-current assets
(a)
Property, plant and equipment
(b) Capital work-in-progress
(c)
Investment property
(d) Goodwill
(e)
Other Intangible assets
(f)
Financial assets
(i)
Investments
(ii)
Loans
(iii) Others
(g) Other non-current assets
Total Non-current assets
Current assets
(a)
Inventories
(b) Financial assets
(i)
Investments
(ii)
Trade receivables
(iii) Cash and cash equivalents
(iv) Bank Balances other than above
(v)
Loans
(c)
Other current assets
Total current assets
TOTAL ASSETS
EQUITY AND
LIABILITIES
Equity
(a)
Equity share capital
(b) Other Equity
Equity attributable to shareholders of the Company
Non Controlling Interest
Total equity

As at
As at
30/09/2016 ) 31/03/2016(Audited)

1,252.94
73.30
59.67
410.53
16.33

1,235.11
44.80
65.06
410.53
18.12

2,357.08
15.69
30.87
100.02
4,316.43

1,894.77
15.83
28.64
21.09
3,733.95

1,162.15

1,096.50

783.47
830.80
119.61
115.81
3.09
305.77
3,320.70

808.98
809.52
131.15
88.67
2.14
257.09
3,194.05

7,637.13

6,928.00

176.15
4,494.47
4,670.62
23.70
4,694.32

175.91
3,994.70
4,170.61
21.68
4,192.29

Non-current liabilities
(a)
Financial liabilities
(i)
Borrowings
(ii)
Other financial liabilities
(b) Deferred tax liabilities (Net)
(c)
Provisions
Total Non-current liabilities

509.07
4.67
106.03
53.60
673.37

342.44
4.96
87.93
50.88
486.21

Current liabilities
(a)
Financial liabilities
(i)
Borrowings
(ii)
Trade payables
(iii) Other financial liabilities
(b) Other current liabilities
(c)
Provisions
(d) Current tax Liabilities (Net)
Total Current liabilities

572.39
1,268.42
88.36
210.44
92.66
37.17
2,269.44

449.74
1,327.33
103.69
247.56
90.38
30.80
2,249.50

TOTAL EQUITY AND LIABILITIES

7,637.13

6,928.00

20

ThankYou
21