FMCG giant Dabur reported a 4.6 percent year-on-year increase in net profit to Rs 505.3 crore for the quarter ended September. That was higher than analysts' prediction of Rs 490 crore.
Fast moving consumer goods major Dabur on Tuesday reported a net profit of Rs 505.3 crore for the quarter ended September, up 4.7 percent on a year-on-year basis. The company's revenue increased 12 percent to Rs 2,817.6 crore. Both profit and revenue exceeded Street estimates.
Analysts in a CNBC-TV18 poll had estimated the company's net profit at Rs 490 crore over revenue of Rs 2,670 crore.
The company's earnings before interest, taxes, depreciation and ammortisation (EBITDA) came in at Rs 620.7 crore in the second quarter of the current financial year. That was up nine percent on year.
Dabur's EBITDA margin was at 22 percent in the July-September period, as against 22.6 percent in the corresponding period a year ago.
Analysts in the CNBC-TV18 poll had estimated the FMCG company's EBITDA at Rs 575 crore and EBITDA margin at 21.5 percent.
Dabur's domestic volume growth came in at 10 percent, as against analysts' prediction of 4-5 percent. The company said it was the fifth successful quarter in a row with double digit volume growth.
"While the COVID fears have largely receded with the vaccination drive gathering pace and mobility improving, the operating environment remained challenging with unprecedented inflation impacting consumer sentiments in the run up to the festive season. Our strategic business transformation exercise last year helped us successfully address the emerging challenges and deliver healthy topline growth despite the tough macroeconomic conditions," said Mohit Malhotra, CEO, Dabur India.
"We have undertaken calibrated price increases and sharpened our focus on cost control to mitigate the impact. We continue to focus on rolling out consumer-relevant innovations, coupled with heavy investments behind our power brands and distribution expansion strategy, to deliver strong, sustainable and profitable growth," he added.
The company saw growth of 13.8 percent in its international business in constant currency terms.
Its board declared an interim dividend of Rs 2.5 per equity share.
Dabur shares traded 0.3 percent lower at Rs 596 apiece in late afternoon deals on BSE.
(Edited by : Sandeep Singh)
First Published: IST