The Board of Directors of Dabur India Ltd (DIL) met today to consider the unaudited financial results of the company for the first quarter ended June 30, 2019.
A robust distribution expansion strategy in rural India coupled with higher investments behind our Power Brands and a revamp of the Supply Chain infrastructure helped Dabur India Ltd mitigate the impact of macro-economic headwinds to post a 9.3% jump in Consolidated Revenue for the first quarter of 2019-20 financial year. Dabur India Ltd Consolidated Revenue for Ql of 2019-20 stood at Rs 2,273 Crore, up from Rs 2,081 Crore a year ago.
Consolidated Net Profit for the first quarter marked a 10.3% growth to Rs 363 Crore, up from Rs 329 Crore in the same quarter last year.
Dabur's Standalone India Revenue for the quarter grew by 10.5% at Rs 1,628 Crore in Ql of 2019-20, while Standalone Net Profit was up 11.8% to Rs 258 Crore. The domestic FMCG business reported a Volume Growth of 9.6% during the quarter.
"While the macroeconomic environment continues to be challenging with an overall demand slowdown in India and competitive intensity remaining high, we have executed well on our distribution expansion strategy in rural India which has resulted in consistent improvement of our performance. Our rural footprint has been expanded to over 48,000 villages now, up from 44,000 villages in March 2019. For Dabur, rural demand is growing ahead of urban. With this, we have built a strong foundation for sustainable profitable growth. We have efficiently managed the risks and challenges to post an 18.5% growth in our Operating Margin for the quarter," Dabur India Ltd Chief Executive Officer Mr. Mohit Malhotra said.
Despite tough operating conditions and high competitive pressures, Dabur brands reported a robust performance during the quarter, growing ahead of the market, delivering strong double-digit growth and gaining market share across key categories like Health Supplements, Hair Care, Oral Care and Foods. "Our increased focus on the Consumer Health space and disproportionately higher investments behind our Power Brands have started paying dividend. We will continue to invest behind our brands, accelerate on product innovation efforts, and enhance our capabilities for sustainable future growth," Mr. Malhotra said.
The Health Supplements business for Dabur ended Ql with a 19.6% growth. The Digestives category, led by Hajmola and PudinHara, ended the quarter with an 18.2% growth. The OTC and Ayurvedic Ethicals business grew by 14.5% during Ql. While the Hair Oil business, led by strong demand for Dabur Amla Hair Oil, reported a 12.1% growth, the Shampoo category grew by around 11%. The Skin Care category grew by over 12%, while the Toothpaste business, led by strong demand for Dabur Red Paste, posted an 11.4% growth during the first quarter. The Home Care business grew by nearly 11% during the first quarter of 2018-19.
During the quarter, Dabur's International Business reported a 7.7% growth, in constant currency terms, led by Turkey, which grew 40.7%.
Shares of DABUR INDIA LTD. was last trading in BSE at Rs.421 as compared to the previous close of Rs. 429. The total number of shares traded during the day was 700301 in over 10776 trades.
The stock hit an intraday high of Rs. 435.15 and intraday low of 415.7. The net turnover during the day was Rs. 297337843.