Homegrown FMCG major Dabur India Ltd on Thursday reported a decline of 5.51 per cent in its consolidated net profit to Rs 476.55 crore for the third quarter ended December 2022, as inflationary pressures impacted consumption. The company had posted a net profit of Rs 504.35 crore in the October-December quarter a year ago, Dabur India said in a regulatory filing.
However, its revenue from operations rose 3.44 per cent to Rs 3,043.17 crore during the quarter under review against Rs 2,941.75 crore in the corresponding quarter of the previous fiscal.
“Dabur India Ltd braved the inflationary pressures, significant moderation in industry growth and dip in overall consumer sentiments to deliver a competitive growth of 3.4 per cent in consolidated revenue for the third quarter of 2022-23 at Rs 3,043 crore,” it said.
Dabur India’s total expenses rose 5.63 per cent to Rs 2,523.09 crore in the latest December quarter. It was Rs 2,388.53 crore in the year-ago period.
Its Chief Executive Officer Mohit Malhotra said: “The impact of inflationary pressures was more pronounced in the rural markets as marked downtrading and shift to more affordable and smaller packs led to rural growth lagging urban markets for the second quarter in a row for Dabur”.
In the October-December period, Dabur’s consolidated revenue from the consumer care business segment was up 7.13 per cent at Rs 2,618.04 crore compared to Rs 2,543.23 crore a year ago.
Its food business was up 7.13 per cent at Rs 352.47 crore. It was Rs 329 crore in the preceding year.
Dabur’s revenue from its retail business increased 15.02 per cent to Rs 31.62 crore from Rs 27.49 crore in Q3 FY2021-22.
Revenue from other segments slipped 3.88 per cent to Rs 31.40 crore against Rs 32.67 crore in the same quarter of FY22.
Its international business reported a growth of 14 per cent in constant currency terms.
“The Turkey business grew by 97 per cent, while the Egypt business was up 35 per cent. The Sub-Saharan Africa business reported a growth of 17 per cent, while the SAARC market grew by 8 per cent,” it said.
On the outlook, Malhotra said he believes that this demand slump in rural has bottomed out as it is now seeing some green shoots of revival in demand in the hinterland.
“We are hopeful of rural demand reporting a smart recovery on the back of a record farm output and increased government spending. The urban growth will be driven by softening of inflation and buoyancy in new-age channels like Modern Trade and e-commerce,” he added. Shares of Dabur India Ltd on Thursday settled at Rs 553.90 apiece on BSE, down 1.38 per cent from the previous close.
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