Dabur Q1 net profit up 10% at Rs 364 cr, driven by growth in rural sales

Homegrown FMCG major Dabur India Ltd on Friday reported 10.24 per cent increase in consolidated net profit to Rs 363.81 crore for the first quarter ended June, 2019, driven by growth in rural sales.

It had posted a net profit of Rs 330 crore in the April-June period of the last fiscal, Dabur India said in a BSE filing.

Dabur's revenue from operations for the quarter under review was up 9.25 per cent to Rs 2,273.29 crore, as against Rs 2,080.68 crore in the corresponding quarter of the previous fiscal.

"While the macroeconomic environment continues to be challenging with an overall demand slowdown in India and competitive intensity remaining high, we have executed well on our distribution expansion strategy in rural India which has resulted in consistent improvement of our performance," said Dabur India CEO Mohit Malhotra.

According to the company, its domestic FMCG business reported a volume growth of 9.6 per cent during the quarter.

Dabur's total expenses were at Rs 1,883.65 crore, as against Rs 1,752.17 crore, registering a rise of 7.50 per cent.

Revenue from the Dabur's consumer care business was up 11.38 per cent to Rs 1,844.60 crore during the quarter under review, as against Rs 1,656.08 crore of the corresponding quarter.

Its food business saw a marginal growth of 0.77 per cent to Rs 366.32 crore as against Rs 363.51 crore in the first quarter of FY2018-19.

While the company's retail business was up 6.42 per cent to Rs 32.31 crore, as against Rs 30.36 crore a year ago.

Revenue from others segments was also up 3.05 per cent to Rs 23.65 crore in the June quarter, as against Rs 22.95 crore in the year-ago period.

Over the outlook, Malhotra said: "we will continue to invest behind our brands, accelerate on product innovation efforts, and enhance our capabilities for sustainable future growth."

Share of Dabur India Ltd were trading at Rs 423.75 on BSE at afternoon, down 1.22 per cent from previous close.