Dabur Q2 net up 15%, volume rises 8.7%

Consolidated net sales grew by 10.4% to Rs 1,924.09 crore

Dabur India Ltd on Monday reported a 15.11 per cent increase in consolidated net profit at Rs 287.48 crore for the second quarter ended September 30, 2014-15.

The company had net profit of Rs 249.74 crore in the July- September quarter of last financial year, 2013-14. Dabur’s second quarter, 2014-15 net sales went up by 10.35 per cent at Rs 1,924.09 crore, compared to Rs 1,743.5 crore in the year- ago period, the company said in a BSE filing.

"In a low growth and challenging environment where growth rates in most consumer products segments have witnessed a sharp fall, Dabur continued to report strong volume-led growth across its key categories and grow ahead of the market," Dabur India CEO Sunil Duggal said in a statement.

During the July-September quarter, Dabur's volume grew by 8.7 per cent in the domestic market. Foods business witnessed a 29 per cent jump during the second quarter, followed by hair care at 14 per cent, while its ayurvedic ethicals saw a 15 per cent growth and toothpaste business grew by 11.5 per cent. Dabur's digestives business also grew by more than 12 per cent while health supplements as a category had a 10 per cent growth.

"We have managed our business dynamically through a combination of calibrated price increases and greater focus on cost efficiencies. We continue to invest behind our brands and have laid the foundation for strong and profitable growth in the future. Our domestic FMCG business continued to perform ahead of the industry," Duggal said.

The company said in a statement that its international business also recorded good growth during the second quarter, led by Egypt, Gulf Cooperation Council countries (GCC) and Nepal markets. "We are managing our business dynamically to ensure that we remain competitive and cost efficient. Our Egypt business grew by 28 per cent, while sales in GCC grew by 24 per cent and Nepal by 21 per cent," Dabur India group director P D Narang said in a statement.