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Dabur net up 16% on rural growth

After the results were announced, Dabur India shares dropped 2.15% to 129.80 on the BSE

BS Reporter  |  New Delhi 

Backed by better growth in the rural areas, Dabur India reported a 16.4 per cent rise in net profit in the September quarter. Its net profit stood at Rs 202 crore, up from Rs 174 crore in the corresponding quarter of the last financial year.

Dabur India CEO Sunil Duggal said the company grew an impressive 20 per cent growth in rural areas, while it grew 10 per cent in urban.

The company’s consolidated net sales increased 20.6 per cent to Rs 1,523 crore in the second quarter of the current financial year, as against Rs 1,262 crore reported in the same quarter in the last fiscal.

After the were announced, Dabur India shares dropped two per cent to Rs 123 on the Bombay Stock Exchange.

“The rising cost pressures were managed through a mix of judicious price increases and improved buying efficiencies,” Duggal said.

The company, which is expanding its rural presence by targeting to reach villages with 3,000 population, hopes to complete its rural drive within the next two-to-three months. “Almost 91 per cent is already complete,” Duggal added.

During the current fiscal, Dabur India will spend about Rs 175 crore as capex.

The company has declared an interim dividend of 65 per cent for 2012-13. The total payout as interim dividend would be Rs 131.67 crore, Dabur India chairman Anand Burman said in a statement.

The statement added that the company’s shampoo business grew 40.2 per cent, followed by skin care, which has grown on the back of Fem at about 25 per cent during the quarter. Dabur’s home care business increased 23 per cent and health supplements segment grew by 15.7 per cent.

The company reported a 24.8 per cent growth in international business, especially in GCC (Gulf Cooperation Council) countries, Egypt and Nigeria during the July-September quarter.

“Hair care and toothpastes were the key growth drivers for Dabur in the international markets,” said P D Narang, group director, Dabur India, in a statement.

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First Published: Sat, October 27 2012. 00:17 IST