Dabur Q3 net surges 13% to Rs 319 crore

Company's net sales was up 2.35% to Rs 2,122.43 crore during the period under review

FMCG major Dabur today reported an increase of 12.64% in consolidated net profit at Rs 318.54 crore for the December quarter on account of growth in its consumer care business.

The company had posted a net profit of Rs 282.78 crore during the same period of the previous fiscal.

Dabur's net sales was up 2.35% to Rs 2,122.43 crore during the period under review as against Rs 2,073.57 crore in the year-ago period, Dabur Ltd said in a statement.

"The overall demand environment remained tepid in the third quarter with some key segments showing deceleration while competitive intensity was at a high," said Sunil Duggal, Chief Executive Officer, Dabur.

He further said the macroeconomic environment continues to be challenging as the company faced several headwinds in the form of geo-political disturbances in key geographies in the Middle East and delayed winters in India.

"The ongoing political unrest in Nepal and blockade of the India-Nepal border severely impacted Dabur's Foods business. However, we have taken steps to mitigate the impact by ramping up the production of juices in Sri Lanka and India to cater to our demand," Duggal said.

The company's revenue from consumer care business was up 5.48% to Rs 1,888.96 in the third quarter of the current fiscal as against Rs 1,790.80 crore in the year-ago period.

However, its food business was down 23.70% to Rs 167.72 crore, while its retail business was up 22.41% to Rs 31.40 crore during the quarter under review.

Dabur's international business division reported 14.8% growth during the third quarter of 2015-16.

"The growth in Dabur's international business was led by Bangladesh at over 15%, Turkey at 14% and GCC at 10%. The US-based Namaste Laboratories posted a strong double-digit growth with both the US and non-US businesses performing well," Duggal added.

Dabur shares today closed 3.21% up at Rs 244.60 per scrip on the BSE.