Dabur Q3 Profit Rises 6.2% to Rs 506 Cr, Revenue Up 7%

New Delhi, Jan 31 (PTI) Home-grown FMCG major Dabur India Ltd on Wednesday reported a 6.24 per cent increase in consolidated net profit at Rs 506.44 crore in the third quarter ended December 2023, helped by higher volume amid moderated inflation.

The company had posted a net profit of Rs 476.65 crore in the October-December quarter a year ago, Dabur India said in a regulatory filing.

Its revenue from operations rose 7 per cent to Rs 3,255.06 crore during the quarter under review. It was at Rs 3,043.17 crore in the corresponding quarter of the previous fiscal.

This was "driven by steady performance of both the home & personal care and food & beverages business," said an earnings statement of the company which owns brands such as Dabur Amla, Dabur Vatika and juice brand Real.

Total expenses of Dabur India in the December quarter went up 7.82 per cent to Rs 2,720.62 crore.

"Despite the delay in onset of winters slightly impacting the healthcare and winter portfolio, Dabur's India business ended the third quarter with a volume growth of 6 per cent," it said.

Dabur India's total income stood at Rs 3,382.43 crore, up 7.58 per cent year on year.

The company posted category-leading growths with market share gains across the portfolio, helped by strength of its consumer-focused product portfolio, brand communication and excellence in go-to-market execution.

"Moderating inflation coupled with buoyant consumer sentiments and our focussed investment in distribution footprint expansion in rural India helped demand from the hinterland bounce back for Dabur. Rural demand for Dabur grew 200 bps ahead of urban," said Dabur India CEO Mohit Malhotra.

The company has been investing in growing rural footprint, which has expanded by 17,000 villages in the current fiscal from 1,00,000 to reach 1,17,000.

"We are working towards ending this year with a rural coverage of 1.2 lakh villages. Dabur's rural distribution has, in fact, been the highest in the industry, giving us a distinct advantage and helping drive our rural growth," he added.

In the December period, Dabur's consolidated revenue from the consumer care business segment was at Rs 2,741.78 crore and Rs 442.12 from the food business.

Dabur's revenue from its retail business was at Rs 32.91 crore and Rs 29.08 from other segments.

Share of Dabur India on Wednesday settled at 537.70 on BSE, up 0.35 per cent from the previous close.