Apr 26, 2001|
Cadbury 1Q: Taxes hit net margins
Cadbury India Limited has posted a net profit of Rs 124 m for the quarter ended March 31, 2001. This is up 18.5% as compared to Rs 105 m net profit declared during the quarter ended March 31, 2000. The company's turnover is up 8% during the period.
|Operating Profit (EBDIT)
|Operating Profit Margin (%)
|Profit before Tax
|Profit after Tax/(Loss)
|Net profit margin (%)
|No. of Shares (eoy) (m)
|Earnings per share*
|Diluted Earnings per share*
|Current P/e ratio
Cadbury too seems to have been affected by the slowdown in consumption. Cadbury's turnover grew by 12% in FY01 (YoY). Even more interestingly, the company's turnover growth in the first quarter of 2000 was nearly 17% YoY.
The chocolate & confectionery major improved its operating margins by a significant 220 basis points but failed to convert this into a significant net margin improvement. A huge 52% jump in Cadbury's taxes during 1QFY02 hampered net profit growth. However, the company's interest burden has declined by a significant 29% during the quarter.
At the current price of Rs 450 the stock trades at a P/e multiple of 32 times its annualised earnings. The company dominates the chocolate scene in India and enjoys pricing power over the consumers. On the longer term the company looks very strong. However, in the near term a recovery in consumption is a factor of the uncertain monsoons.
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