ICICI Securities expects GSK Consumer, Dabur and Marico to lead the FMCG pack in earnings growth for the third quarter of fiscal 2012-13. GSK Consumer to report 46% PAT growth, driven by 17% revenue growth and 85bps EBITDA margin expansion. Marico may report another quarter of strong margin expansion along with a 20% revenue growth. Trade interactions underline revival in Dabur's performance and maintenance in Marico's growth momentum (Paras' portfolio witnesses strong demand though there is supply constraint). It retains BUY call on Dabur, GSK Consumer and Marico.
Commenting on the earnings preview for FMCG sector, ICICI Securities said, 'We believe EBITDA margin expansion with steady revenue growth shall be the theme in our FMCG universe for Q3FY13. We see a revenue growth of 16% YoY in the companies under our coverage, with gross margin expanding by 88bps to 53%. We expect the EBITDA margin to expand by 63bps to 22.7%, supported by a stable advertisement-to-sales (A:S) ratio.'
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