The fast moving consumer goods (FMCG) company posted 4 per cent YoY jump in consolidated revenue at Rs 2,212 crore in Q2FY20. Consolidated net profit grew 7 per cent at Rs 403 crore as against Rs 377 crore in the year-ago quarter. The profit during the quarter was impacted by one-time impairment in value of investments to the tune of Rs 40 crore. Consolidated operating margin improved by 91 basis points (bps) to 22.1 per cent in Q2FY20.
The management said during the quarter, the company has expanded rural footprint to over 51,000 villages, up from 48,000 villages in June 2019. Riding on this expansion, rural demand continues to grow ahead of urban demand for the company, it added.
The increased investment behind brands and in innovation is clearly paying off with Dabur brands growing ahead of the categories and gaining market share, despite the tough operating conditions. The market share in the toothpaste category is increased by 66 basis points YoY. The company reported a 30 bps gain in market share in the hair oil segment, while shampoo category market share grew by 65 bps.
Meanwhile, the board of directors declared an interim dividend of 140 per cent (Rs 1.40 per share) for 2019-20.
At 02:37 pm, the stock was trading 3.6 per cent higher at Rs 476 on the BSE, as compared to a 0.23 per cent decline in the S&P BSE Sensex. The counter witnessed an over 6-fold surge in the trading volumes with a combined 6.2 million shares changing hands on the NSE and BSE so far.