Dabur Q1 net profit jumps 28% on volume growth, higher margin

by 5paisa Research Team Last Updated: Dec 12, 2022 - 12:51 pm 1.9M Views
Listen icon

Fast-moving consumer goods maker Dabur India Ltd reported a 28% jump in its consolidated net profit for the first quarter through June 2021 thanks to strong growth in business volumes and higher earnings margins.

Net profit for the April-June period rose toRs 438.3 crore from Rs 341.3 crore in the year-ago period, the maker of Dabur Chyawanprash, Real fruit juices and Vatika hair oil said.

The company’s revenue climbed 32% to Rs 2,611.5 crore from Rs 1,980 crore a year earlier, despite the mobility restrictions and disruptions due to localized lockdowns in the wake of the Covid-19 pandemic.

Dabur’s India FMCG business grew 35.4% during the quarter, with an underlying volume growth of34.4%.

Other key details:

  1. Dabur’s EBITDA rose 32.5% to Rs 552 crore from Rs 416.5 crore. EBITDA margin widened to 21.1% from 21%.

  2. April-June revenue from the food business soared 85% to Rs 402.5 crore.

  3. Quarterly sales from the main consumer care business jumped 25% to Rs 2,168 crore

  4. Healthcare business reported 30% growth, with the ayurvedic OTC business growing 52%.

  5. Overseas sales soared 34% in constant currency terms, with the MENA business growing 49% and SAARC business rising 41%.

Management commentary:

Dabur CEO Mohit Malhotra said the company learnt from last year to streamline its supply chain and ensured minimal disruption while firmly focusing on delivering volume-led growth.

Malhotra said the company has expanded its rural coverage by 16%, from 60,000 villages at the end of 2020-21 to 69,000 villages as of June 30, 2021, and that it plans to expand it to 80,000 villages over the next two years.

The company also said that its e-commerce vertical reported more than 100% growth and now contributes 8.2% to its India FMCG business.

It also said that discretionary spending in the country is reviving despite the pandemic. This helped its home andpersonal care business grow by 26% during the quarter while the skin care and salon business reported 66% growth.

Share Market Today

How do you rate this article?

Start Investing in 5 mins*

Rs. 20 Flat Per Order | 0% Brokerage


About the Author

Our research team is composed of some highly qualified research professionals, their expertise range across sectors.

Open Free Demat Account
Resend OTP
Please Enter OTP
Mobile No. belongs to

By proceeding, you agree to the T&C.

Latest News
Paytm Share Price Surge 5% After Discontinuing Inter Company Pacts with PPBL

At 2.25 pm today, shares of One97 Communications the parent company of the renowned Paytm brand surged by 5% reaching ₹423.45.

NTPC Enters JV Agreement with Maharashtra State Power Generation

NTPC Green Energy Limited, a subsidiary of NTPC Limited, has partnered with Maharashtra State Power Generation Company Limited (MAHAGENCO) to lead the development of renewable energy parks in Maharashtra.

Happiest Minds Partners with Secureworks for Advanced XDR Services

Happiest Minds Technologies has recently announced its collaboration with the Secureworks Global MSSP Partner program to address the escalating need for Extended Detection and Response (XDR) services worldwide.