Dabur hits multi-year high margins in Q4 on cost management, steady sales

10% year-on-year rise in sales (adjusted for goods and services tax) in Q4 also supported the sturdy margin performance

Dabur India’s operating profit margins rose 23.9 per cent, up 206 basis points year-on-year as the company hit their highest level since 2008 in the March 2018 quarter (Q4). This was led by cost management and steady sales. “Our operating margin has increased on the back of improved operating efficiencies and judicious cost management,” said Sunil Duggal, chief executive officer (CEO).

During the quarter, the company’s operating expenses (excluding finance costs and depreciation) as a per cent of sales came down to 76 per cent, which is amongst the lowest it has recorded in the past, from 78 per cent