Profit Meets Estimates But Demand Remains Weak

Dabur India Ltd.’s quarterly profit rose, in line with estimates, even as input cost pressures persisted.

Net profit of the Ayurveda products maker rose 50% sequentially to Rs 441.06 crore in the quarter ended June, according to an exchange filing. That compares with the Rs 442.8-crore consensus estimate of analysts tracked by Bloomberg.

In the quarter ended March, the company saw a drag in net profit because of exceptional items and tax. Profit before exceptional items and tax stood at Rs 474.7 crore in Q4 FY22. Year-on-year, Dabur reported a 0.63% increase in net profit in April-June 2022.

Dabur Q1 FY23 Highlights (QoQ)

  • Revenue rose 12% to Rs 2,822.43 crore, against the projected Rs 2,791.8 crore.

  • Operating profit fell 7% to Rs 544 crore, against the Rs 546-crore forecast.

  • Margin stood at 19.3% against 23.2%.

  • Cost of materials consumed, including excise duty, rose 5.8% to Rs 1,373.9 crore.

Margin normalised to pre-Covid levels for Q1 FY23 despite unprecedented inflation, said Mohit Malhotra, the company’s chief executive officer.

Consumption pressure continued on account of unprecedented inflation, which has impacted the share of the income available for spending on consumer staples, the company had said in its quarterly update. And this, it said, was witnessed across both rural and urban markets.

Shares of Dabur rose 0.68% after the results were announced against a flat Nifty 50 as of 3:15 p.m.

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