Dabur posts 24 percent surge in net profit

Registering a good growth across its business verticals, consumer goods company Dabur India Ltd. (DIL) on Wednesday posted an increase of 23.86 percent in its net profit at Rs.261.11 crore for April-June.

Its net profit during the year-ago period stood at Rs.210.81 crore.

The company's net income from operations in the period under review rose by 10.74 percent at Rs.2,069.49 crore against Rs.1,868.86 crore in the corresponding period of the previous fiscal.

"The macro-economic scenario remains challenging. In this subdued environment, we remained watchful, agile and prudent, managing our business dynamically to deliver another quarter of competitive and profitable growth.

"Our India FMCG business ended the first quarter of 2015-16 with an 11.6 percent growth, led by an 8.1 percent volume growth. Our EBITDA marked a 21.6 percent growth during the quarter," said Sunil Duggal, the company's chief executive officer, in a statement.

Revenues from its consumer care line of business rose by a modest 9.32 percent at Rs.1,662.41 crore compared to Rs.1,520.66 crore in the corresponding period of last fiscal.

The food business division garnered a revenue of Rs.344.36 crore which increased by 15.43 percent compared to the earning of Rs.298.34 crore during April-June last year.

Although its retail division posted an increase of 38.48 percent in its net profit in the review period at Rs.26.77 crore against Rs.19.33 crore in the year ago period, the division suffered a meager net loss of Rs.0.05 crore.

Its toothpaste business ended the first fiscal quarter with a near 24 percent growth while the OTC and Ethicals business ended the fiscal period with a 16.7 percent growth.

The hair oil category reported a 13 percent growth during the period and the shampoo segment ended the April-June period with an 11.5 percent growth.

DIL's international business reported a steady growth in Turkey, Nepal and Gulf Cooperation Council (GCC) areas in the fiscal quarter.

"Despite disruptions in some overseas geographies, we are managing our business dynamically to ensure that we remain competitive and cost efficient. Our Turkey business grew by over 22 percent, while sales in Nepal grew by over 14 percent and GCC markets by 10 percent," said P.D. Narang, the firm's group director.

In the review fiscal quarter, DIL forayed into the premium baby care market.