Dabur India Q2 net up 20% to Rs 483 cr despite sharp rise in tax outgo

Domestic sales drive the numbers as operating revenue grows 14%

2 min read Last Updated : Nov 04 2020 | 1:40 AM IST

Backed by strong sales in the domestic market, Dabur India reported a sharp rise in its revenue and profit for the July-September quarter. The Ghaziabad-headquartered firm’s net profit rose 19.6 percent year-on-year to Rs 482.9 crore from Rs 403.6 crore. Its bottom line showed strong growth despite a steep 51 per cent rise in its tax outgo due to readjustments with the new accounting standards.

Dabur’s operating revenue grew 13.7 percent to Rs 2,516 crore from 2,212 crore in last September due to superior performance in the domestic market. It reported an 18 percent rise in its India business that accounts for 67 percent of its revenue. Domestic revenue stood at Rs 1,901 crore, up from Rs 1,612 crore.

Net profit for the local market jumped 20.6 percent to Rs 393 crore.

The fast moving consumer goods business, which accounts for close to 99 per cent of Dabur India’s operations, jumped 19.8 percent, with an underlying volume growth of 16.8 percent.

According to Mohit Malhotra, chief executive officer, Dabur India, the strategic business transformation exercise that it undertook “to develop and implement aggressive growth strategies in the core business areas and successfully address the emerging challenges helped us deliver a healthy top-line growth accompanied by an expansion in margin”.

It reported a strong 49 percent growth in domestic healthcare business, backed by recent innovations that are now contributing around 5-6 percent of its revenue from the segment. Its international business, accounting for a third of sales, recovering slowly. It reported a 5.5 percent growth from the division.

Dabur “continued to focus on strengthening its core Healthcare portfolio with the introduction of new innovations, coupled with heavy investments behind its Power Brands and expanding its distribution might. This has enabled the company to grow ahead of categories and gain market share across the portfolio”, said Malhortra.