DaburIndiaLtd

InvestorCommunication
Quarterand9MendedDecember31,2010

January31,2011

InvestorCommunicationQ3and9MFY201011

PerformanceOverview9MFY201011
9 Consolidatedsalesincreasedby16.9%during9MFY11totouchRs.2,992.6crores.
9 ConsumerCareDivision(CCD)grewby15.4%whileInternationalBusinessDivision
(IBD)achievedgrowthof20.3%
9 ConsolidatedPATincreasedby15%toRs.421.9crores for9MFY201011
9 EBITDAMarginsremainedstableinspiteofinflationarypressures
9 Hobi acquisitioncompletedonOctober7,2010withacquisitionofsharesofthethree
entitiesofHobi Group:Hobi Kozmetik,Zeki Plastik andRaPazarlama
9 Namaste Laboratories acquisition completed and financials to be consolidated
January1,2011onwards

January31,2011

InvestorCommunicationQ3and9MFY201011

SalesPerformance
Sales:9MFY11v/s 9MFY10
in Rs. Crores

3000
2500
2000
1500
1000
500
0

2,561

9MFY10

.9%
16

2,993

9MFY11

Sales:Q3FY11v/s Q3FY10
in Rs. Crores

1200
1000
800
600
400
200
0

1,088
932

Q3FY10

16

.7%

Q3FY11

Salesfor9MFY11increasedby16.9%whichwaslargelyvolumedriven.
SalesforQ3FY11increasedby16.7%backedby10%volumegrowth,
4.1%pricegrowthand3%contributionfromHobi

January31,2011

InvestorCommunicationQ3and9MFY201011

EBITDAMargin
EBITDAMargin:9MFY11v/s 9MFY10
25.0%
20.0%

19.5%

ps
28 b

19.7%

15.0%
10.0%
5.0%
0.0%
9MFY10

9MFY11

EBITDAMargin:Q3FY11v/s Q3FY10
25.0%
20.1%
ps
19.6%
52 b
20.0%
15.0%
10.0%
5.0%
0.0%

Q3FY10

Q3FY11

EBITDAmarginexpandedby28bpstotouch19.7%in9MFY11inspite
ofsurgeininputcosts
EBITDAmarginexpandedby52bpstotouch20.1%inQ3FY11

January31,2011

InvestorCommunicationQ3and9MFY201011

PATPerformance
PAT:9MFY11v/s 9MFY10
in Rs. Crores

500
400
300
200
100
0

367

422
.0%
15

PAT:Q3FY11v/s Q3FY10
200
150

in Rs. Crores

138

11

.8%

154

100
50
0

9MFY10

9MFY11

Q3FY10

Q3FY11

PATincreasedby15%during9MFY11despiteinputcostinflationand
increasedtaxation
PATincreasedby11.8%forQ3FY11inspite ofhighinputcostinflation

January31,2011

InvestorCommunicationQ3and9MFY201011

EBITDAAnalysis9MFY201011
EBITDAmarginexpandedby28bpstotouch19.7%in9MFY11
Materialcostsincreasedto47.3%ofSalesascomparedto45.6%inthe
previousyear
A&Pexpendituretosaleswasat13.6%in9MFY11v/s 14.8%lastyear
Employeecostsat7.7%ofsalesin9MFY11visvis8.2%intheprevious
year
Otherexpenditurewasat12.2%in9MFY11visvis12.5%in9MFY10
Othernonoperatingincomewasat0.5%ofsalesin9MFY11ascompared
to0.7%in9MFY10

January31,2011

InvestorCommunicationQ3and9MFY201011

SBUPerformance9MFY11
SBUSalesContribution:9MFY11
IBD
19.0%

Hobi
0.9%

Others
2.2%

SBUWiseGrowth:9MFY11
25.0%
20.0%

20.3%
15.4%

15.0%

CHD
7.7%

CCD
70.2%

13.0%

10.0%
5.0%
0.0%

CCD

CHD

IBD

CCDrecordedgrowthof15.4%in9MFY11and13.8%inQ3FY11,whichwas
primarilyvolumeled
CHDgrowthwasat13%for9MFY11and13.8%forQ3FY11
IBDpostedgrowthof20.3%in9MFY11(25.3%inconstantcurrencyterms)
and14.2%inQ3FY11(19.2%inconstantcurrencyterms)
7

January31,2011

InvestorCommunicationQ3and9MFY201011

CCDCategoryPerformance
CategoryGrowthsduring9MFY11
33.1%
23.7%
13.2%

13.3%

CategorywisebreakupofSales(9MFY11)

27.7%

14.2%

Foods
15%

Digestives
8%

Foods

Home Care

Skin Care

Digestives

Health
Supplemen
ts

Oral Care

5.1%

Hair Care

Home
Care
6%
Skin Care
6%

Health
Suppleme
nts
21%

Hair Care
27%

Oral Care
17%

Haircarethelargestcategorypostedgrowthof5.1%during9MFY11withHairOilsgrowing
at12.4%
Oralcareposted13.2%growthduringH1FY11withgrowthintoothpastesat18.7%
HealthSupplementsgrewat23.7%in9MFY11ledbygoodgrowthinChyawanprash
SkincareincludingtheFemportfoliogrewby14.2%for9MFY11
HomeCaresurged33.1%for9MFY11
Foodsreportedrobustgrowthof27.7%during9MFY11
January31,2011

InvestorCommunicationQ3and9MFY201011

HairOils
Dabur Amla Hair Oil witnessed growth of 15% in 9MFY11 and Q3FY11 in spite of
increasedcompetitiveactivity.Initiativessuchconsumerpromos onselectSKUs
Vatika HairOilgrewby9%in9MFY11andby6%inQ3FY11. Calibrated price increases
effectedtooffsetinflation.
Anmol CoconutOilrecordedagrowthof10.5%in9MFY11and17.5%inQ3FY11drivenby
activationsinkeymarkets
Vatika Almond Hair Oil: Brand awareness increased by media presence and consumer
promotion

Shampoos
Vatika Shampooswitnessedcontractionof19.3%in9MFY11withQ3FY11decliningby
29.8%
Goingahead,initiativesincludeenhancingvaluepropositioncombinedwithactivation
support
Volumemarketsharehasmovedupto6.9%inQ3FY11ascomparedto6.5%inQ2FY11
indicatingimprovementinsecondaryofftakes duringQ3.

January31,2011

InvestorCommunicationQ3and9MFY201011

OralCare
OralCarecategoryreportedgrowthof13.2%for9MFY11and9.4%inQ3FY11
Toothpasteswitnessedgrowthof18.7%for9MFY11and15.2%forQ3FY11
AsperACNielsen,volumeshareintoothpastesincreasedto14.9%inQ3FY11from
13.6%inQ3FY10
DaburRedToothPastepostedgrowthof20.5%during9MFY11and19.7%inQ3FY11
drivenbyaggressivemarketingefforts
Babool brandincludingBabool MintFreshGelandothervariantsgrewby19.6%in
9MFY11and16.1%inQ3FY11.
Meswak toothpastegrewby13.1%for9MFY11and7.5%inQ3FY11
LDMgrewby2.3%in9MFY11andcontractedby2.5%inQ3FY11.

Foods
Foodsdeliveredgrowthof27.7%in9MFY11and42%inQ3FY11
RealFruitJuicesrecordedgrowthof29%in9MFY11and43.9%inQ3FY11
Activ rangegrewby27%in9MFY11and37.5%inQ3FY11
Hommade brandwithculinaryrangegrewby33.6%in9MFY11and33.9%inQ3FY11
10

January31,2011

InvestorCommunicationQ3and9MFY201011

HealthSupplements
HealthSupplementsrecorded23.7%growthduring9MFY11and12.7% duringQ3FY11
DaburChyawanprash surged25.5%in9MFY11and15.5%inQ3FY11withmarketshare,
involumetermsincreasingto69.9%inQ3FY11from66.3%inQ3FY10(ACNielsen)
DaburHoneyrecorded12.8%growthin9MFY11and9.1%inQ3FY11
DaburGlucosewitnessedstronggrowthof42.6%in9MFY11,butdeclinedmarginallyin
Q3FY11.Thebrandcontinuedtogainmarketshare,withshareincreasingto21.2%in
Q3FY11ascomparedto16.6%anyearago
Nutrigo HealthSupplements,launchedinQ3FY11,havebeenwellaccepted

DigestivesandBabyCare
TheDigestivescategorywitnessedagrowthof13.3%in9MFY11and11.3%inQ3FY11
Hajmola brandgrewby13%in9MFY11and10%inQ3FY11drivenbynewpackaging
andvariants
Lal Tailhasgrownat14%during9MFY11and14.5%inQ3FY11drivenbyincreasing
reachamongruralaudience,BabyBoxactivationandMobileHealthVanactivation

11

January31,2011

InvestorCommunicationQ3and9MFY201011

SkinCare
Skincaregrewby14.2%in9MFY11and18.0%inQ3FY11
Gulabari (with Variants) grew by 15.7% in 9MFY11 and 15.9% in Q3FY11 driven by
focusedmarketinginitiatives.
Femportfoliogrewby14.3%in9MFY11and21%inQ3FY11withgrowthinFembleaches
at18.1%for9MFY11and27%inQ3FY11
Uveda repositionedontheReplenishmentleadingtoskinhealth. Uveda CompleteRepair
5 rangelaunchedinQ3FY11.

HomeCare
Homecarerecordedgrowthof33.1%in9MFY11and24.2%inQ3FY11
Sanifresh grewby23.2%in9MFY11and18.1%inQ3FY11.
Odonil brandgrewby65.9%in9MFY11and53.1%inQ3FY11postrelaunch.Odonil Pluggy
electricalairfreshenerswitnessedpositiveconsumerresponse
Odomos grewby24.2%in9MFY11andwasflattishinQ3FY11

12

January31,2011

InvestorCommunicationQ3and9MFY201011

ConsumerHealthDivision(CHD)
CHD registered 13% growth in 9MFY11 and 13.8% in Q3FY11 driven by aggressive
marketingefforts
BrandPerformancein9MFY11andQ3FY11:
Pudin Hara: 14% in 9MFY11 and 9.5% in Q3FY11; new Pudin Hara Lemon Fizz
launched to target the acidity segment. Going ahead, GastroIntestinal related
initiativesenvisaged
Honitus franchise:grewby25%in9MFY11and21.1%inQ3FY11
Shilajit:registeredgrowthof22.8%in9MFY11and16.8%inQ3FY11drivenbytxt
Dashmularishta registeredgrowthof13.2%in9MFY11and13.7%inQ3FY11
Honitus Day&Nighttablets(forColdandFlurelief)launchedinQ3

13

January31,2011

InvestorCommunicationQ3and9MFY201011

InternationalBusinessDivision(IBD)
IBD posted growth of 20.3% in
9MFY11 and 25.3% in constant
currencyterms
In Q3FY11, IBD grew by 14.2%
and 19.2% in constant currency
terms

KeyRegions Growthrate:9MFY11

50%

60%
50%

41%

40%

34%

34%
21%

30%
20%
10%
0%

GCC, Egypt, North Africa, Nigeria,

Levant were the key growth
markets

Egypt

Key category drivers for growth

were Shampoo, Vatika Hair
Cream, Herbal Toothpaste and
Miswak Toothpaste

KeyProducts Growthrate:9MFY11

Strong improvement in EBITDA

margins and profitability due to
operatingleverage

120%

Nigeria

GCC

North
Africa

Levant

112%

100%
80%
60%

28%

40%

40%

37%

Herbal
Toothpaste

Miswak

20%
0%

Shampoo

Vatika Hair
Cream

Note:Abovegrowthsareinconstantcurrencyterms
14

January31,2011

InvestorCommunicationQ3and9MFY201011

DILConsolidatedP&L 9MFY11andQ3FY11
in Rs. crores
Gross Sales
Less:Excise Duty
Net Sales
Other Operating Income
Material Cost
% of Sales
Employee Costs
% of Sales
Ad Pro
% of Sales
Other Expenses
% of Sales
Other Non Operating Income
EBITDA
% of Sales
Interest Expenses
Depreciation
Amortization
Profit Before Tax (PBT)
Tax Expenses
Provision for Taxation for Earlier years
PAT(Before exceptional item)
% of Sales
PAT(After exceptional Items)
PAT (After Extra ordinary item & Minority Int)

Q3FY11
1087.8
7.8
1080.0
6.9
523.1
48.1%
80.1
7.4%
134.9
12.4%
132.3
12.2%
2.0
218.4
20.1%
5.4
16.0
7.3
189.7
35.7
154.1
14.2%
154.1
154.4

Q3FY10 YoY (%) 9M FY11 9MFY10

932.3
16.7% 2,992.6 2,560.7
6.4
23.4
18.8
925.8
16.6% 2,969.2 2,541.9
2.7 153.1%
25.6
13.9
422.3
23.9%
1,416.2
1,166.4
45.3%
47.3%
45.6%
73.5
7.9%
135.1
14.5%
119.2
12.8%
3.8
182.3
19.6%
2.8
13.1
1.4
165.1
27.3
0.0
137.8
14.8%
137.8
139.3

9.1%
-0.1%
11.0%
-48.5%
19.8%
91.1%
22.2%
423.6%
15.0%
30.9%
11.8%
11.8%
10.9%

230.8
7.7%
407.1
13.6%
366.0
12.2%
15.9
590.6
19.7%
14.4
43.7
13.0
519.5
97.6
421.9
14.1%
421.9
421.6

209.3
8.2%
377.9
14.8%
321.3
12.5%
17.5
498.3
19.5%
15.1
37.2
4.1
441.9
74.7
0.3
367.0
14.3%
367.0
367.8

YoY (%)
16.9%
16.8%
84.8%
21.4%
10.2%
7.7%
13.9%
-9.0%
18.5%
-4.2%
17.4%
215.0%
17.6%
30.7%
15.0%
15.0%
14.6%
15

January31,2011

InvestorCommunicationQ3and9MFY201011

DILConsolidatedBalanceSheet
In Rs. crores
Sources Of Funds
Shareholders' Fund:
Share Capital
Reserves & Surplus
Minority Interest
Loan Funds:
Secured Loans
Unsecured Loans
Deferred Tax Liability
TOTAL
Application of funds:
Fixed Assets:
Gross Block
less: Depreciation
Net block
Capital WIP
Investments
Current Assets,Loans & Advances
Inventories
Sundry Debtors
Cash & Bank balances
Loans & Advances
Less: Current Liabilities and Provisions:
Current Liabilities
Provisions
Net Current Assets
Miscellaneous Expenditure
Deferred Tax Assets
TOTAL

January31,2011

As on Dec 10

As on Dec 09

174.1
1,188.1
1,362
4.1
657.3
85.6

742.9
17.4
2,126

1,372.9
427.8

86.6
793.9
880.5
8.3
103.2
107.5

925.3
337.8
945.1
41.4
120.1

544.6
268.9
636.4
516.2

210.7
12.3
1,112

1,966.1

587.5
59.3
258.8
437.3
213.5
151.4
376.0

1,178.2

608.7
430.6
1,039.3
926.8
93.0

652.6
325.0
977.6
200.6
5.6

2,126

1,112

InvestorCommunicationQ3and9MFY201011

16

ThankYou

January31,2011

InvestorCommunicationQ3and9MFY201011