Dabur India has posted a consolidated net profit of ₹357.3 crore for the quarter ended September 30, up 5 per cent as the FMCG sector is facing stifled growth due to tepid demand for key consumer products categories. The company had posted a consolidated net profit of ₹340.2 crore in the corresponding period previous fiscal.

The company’s consolidated revenues stood at ₹1,975.7 crore for the quarter ended September 30, and saw a growth of a mere one per cent.

The board has declared an interim dividend of 125 per cent for 2016-17. “Continuing with our payout policy, the Board has declared an interim dividend of ₹1.25 per share, aggregating to a total payout of ₹265.01 crore, including tax,” said Anand Burman, Chairman.

The company said that its standalone or India business revenue grew by 2.3 per cent during the second quarter to ₹1,348.1 crore, while the standalone net profit grew by 17.7 per cent to ₹268.7 crore.

“The overall business environment continued to be challenging with consumer demand remaining slack in India while overseas geographies like the Middle East and Africa hit by worsening geopolitical situation…. Even in a tough environment, we have navigated the external business environment well and our domestic FMCG business ended the second quarter of 2016-17 with a volume growth of 4.5 per cent,” said Sunil Duggal, CEO.

He said that the medium to long-term prospects, particularly for India, remain robust and the company is optimistic that domestic consumer demand would gain pace in months to come, riding on good monsoons and a slew of government initiatives announced recently. The company said it is committed to aggressively launch new products leveraging on its Ayurvedic heritage.

While the home care business of Dabur grew by 20 per cent, the foods business ended the quarter with over 15 per cent growth. The skin care business registered a growth of about 7 per cent during the quarter, the company added.

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