The News International Team
FMCG major Dabur India has reported a 15.1 percent growth in net profit at Rs 287.5 crore in September quarter compared to Rs 249.74 crore in same quarter last year supported by higher sales, other income and lower finance cost.
Total income from operations grew by 10.3 percent to Rs 1,929.6 crore in the second quarter of current financial year 2014-15 from Rs 1,748.90 crore in the year-ago period driven by consumer care as well as foods businesses.
Bottomline was in-line while topline was slightly lower than analysts’ expectations. Profit was expected at Rs 286 crore on revenue of Rs 1,991 crore for the quarter, according to the average of estimates of analysts polled by CNBC-TV18.
The company maintained its volume growth within the guidance of 8-10 percent. Volume growth for September quarter was 8.7 percent compared to 8.3 percent in previous quarter.
Sunil Duggal, chief executive officer of the company said in a low growth and challenging environment where growth rates in most consumer products segments have witnessed a sharp fall, Dabur continued to report strong volume-led growth across its key categories and grow ahead of the market.
“We have managed our business dynamically through a combination of calibrated price increases and greater focus on cost efficiencies,” he added.
Dabur’s International Business recorded good growth during the second quarter, led by robust performance in Egypt, GCC and Nepal. Egypt business grew by 28 percent, while sales in GCC grew by 24 percent and Nepal by 21 percent, said PD Narang, group director.
Foods business of the company ended the quarter with a 29 percent growth while the Hair care business reported a near 14 percent growth during the quarter.
Operating profit (earnings before interest, tax, depreciation and amortisation) increased by 6.7 percent year-on-year to Rs 351 crore but margin declined by 60 basis points to 18.2 percent during the quarter, impacted by higher advertising and publicity expenses.
Gross margin during the same period fell 70 basis points to 53.2 percent from 53.8 percent. Advertising spends as a percentage of sales rose by 10 basis points to 13.1 percent during the quarter.
Advertising and publicity expenses jumped 11.4 percent to Rs 253.35 crore in September quarter compared to Rs 227.45 crore in corresponding quarter of last fiscal.
Other income surged 72 percent year-on-year to Rs 38.9 crore while finance cost halved to Rs 10.2 crore from Rs 20 crore during the same period.
At 15:10 hours IST, the stock was quoting at Rs 230.10, up Rs 4.20, or 1.86 percent on the BSE.