Consumer goods maker Dabur India’s first-quarter net profit increased 24.6% to Rs 330 crore from Rs 264.86 crore in the year-ago period because of strong sales.
The homegrown FMCG firm’s net profit in the three months ended June was in line with analysts' expectations. A Reuters poll of analysts had pegged net profit for the quarter at Rs 328.8 crore.
The New Delhi based company’s revenue increased 16.2% to Rs 2,080.7 crore as its domestic FMCG business reported volume growth of 21% during the quarter. Given that indirect taxes were restructured with the launch of GST on July 1 last year, the comparable revenue growth after currency adjustment is 19.6%, said the company.
"We have been witnessing a gradual improvement in consumer demand. Our focus on brand-building and market expansion coupled with innovation has helped Dabur sustain strong growth in our core categories, which has been significantly ahead of the market,” said Dabur India CEO Sunil Duggal.
“Going forward, we will continue to focus on pursuing an aggressive and profitable growth strategy.”
Dabur’s international business, which started as an export business for the Indian diaspora in the Middle East in the early 1980s, also grew at an impressive clip of 10.5%.
Among segments, the shampoo business ended the first quarter with over 30% growth and Dabur honey sales were up a strong 42%, pushing growth in the health supplements category to 27.5%, the company said in a statement.
Dabur’s stock closed 6.96% higher at Rs 420.25 after results were declared.