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Dabur India gains after decent Q1 results

Capital Market 

Dabur India was up 1.34% to Rs 426.65 at 12:14 IST on the BSE after consolidated net profit increased 10.3% to Rs 363.12 crore on 9.3% increase in net sales to Rs 2273.29 crore in Q1 June 2019 over Q1 June 2018.q

The announcement was made during market hours on Friday, 19 July 2019.

Meanwhile, the S&P BSE Sensex was down by 375.26 points or 0.98% to 37,970.55.

On the BSE, 1.14 lakh shares were traded in the counter so far compared with average daily volumes of 2.32 lakh shares in the past two weeks. The stock had hit a high of Rs 428.7 so far during the day. The stock had hit a low of Rs 418 so far during the day. It hit a 52-week high of Rs 490.7 on 27 August 2018 and a 52-week low of Rs 357.1 on 16 May 2019.

Consolidated earnings before interest tax depreciation and amortization (EBITDA) increased 15.5% from Rs 459.8 crore in Q1 June 2018 to Rs 530.9 crore in Q1 June 2019. The domestic FMCG business reported a volume growth of 9.6% during the quarter. The company's rural footprint has been expanded to over 48,000 villages now, up from 44,000 villages in March 2019. For Dabur, rural demand is growing ahead of urban.

The health supplements business for Dabur ended Q1 with a 19.6% growth. The digestives category, led by Hajmola and PudinHara, ended the quarter with an 18.2% growth. The OTC and ayurvedic ethicals business grew by 14.5% during Q1. While the hair oil business, led by strong demand for Dabur Amla Hair Oil, reported a 12.1% growth, the shampoo category grew by around 11%. The skin care category grew by over 12%, while the toothpaste business, led by strong demand for Dabur Red Paste, posted an 11.4% growth during the first quarter. The home care business grew by nearly 11% during the first quarter of 2018-19. During the quarter, Dabur's international business reported a 7.7% growth, in constant currency terms, led by Turkey, which grew 40.7%

Global brokerages remained bullish on the stock, citing strong earnings. The brokerages expect the stock to return 10-22% over a period of one year.

Dabur India operates in key consumer products categories like hair care, oral care, health care, skin care, home care and foods.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, July 22 2019. 12:44 IST