Dabur India has posted a consolidated net profit of Rs 292.8 crore for the quarter ended June 30, up 11.8 per cent from Rs 261.8 crore in the corresponding quarter previous fiscal.

However, due to strong macroeconomic headwinds, the company’s consolidated net sales grew by a mere 1.2 per cent to Rs 1,923.9 crore.

The company said that the business environment remained challenging in the first quarter of this fiscal with demand slowing down across key consumer product categories in the country.

New units

Meanwhile, Dabur plans to invest about Rs 500 crore in this fiscal to set up new production units as well as expanding the existing plants in India and abroad.

In a statement, Dabur India CEO Sunil Duggal said, “In the first quarter of 2016-17, we had to deal with a tough economic environment characterised by demand slowdown, intensifying competitive pressures and deteriorating geopolitical situation in select geographies like the Middle East and Africa.”

He added that despite these challenging conditions the company reported profitable growth in the quarter.

'Prudent growth strategy'

Duggal said that the company is pursuing a “prudent growth strategy” to manage risks and challenges and “protect its turf in the face of intensifying competitive pressures.” The company will also continue to focus on brand-building and leverage on its position of science-based Ayurveda specialist.

The categories which witnessed growth included oral care business which grew 12 per cent during the first quarter, while the foods business grew over 4 per cent. The company’s international business grew nearly 6 per cent led by Nepal, Egypt and Turkey, the statement added.

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