Dabur India Ltd.’s shares went up by 2.96 per cent and reported a 3.5 per cent profit increase for the quarter ending June 30, 2023, at ₹456.61 crore compared to ₹441.06 crore during the corresponding quarter last year. The company’s revenues were up by 10 per cent to ₹3,130 crore, compared to ₹2,822 crore last year. Sequentially, the company’s profits were higher by 55 per cent compared to ₹292.76 crore in the previous quarter.

According to a report by Centrum Broking, “Dabur, the consumer goods company, experienced a positive impact on its gross margin in Q1 due to softening commodity inflation. Despite elevated prices for herbs and food concentrate, the company’s gross margin improved to 46.6 per cent, representing a 70 basis point increase. This improvement was attributed to lower inflation (90 bp), a favourable product mix (20 bp), and a strategic rebalancing of promotion spending (+40 bp).

In addition to maintaining high advertisement spending (+30 per cent), Dabur managed to achieve a remarkable 11.2 per cent growth in EBITDA, settling the EBITDA margin at 19.3 per cent (+6 bp). Management further expressed commitment to keeping operating margins within the range of approximately 19–20 per cent while also planning to reinvest the savings generated from lower inflation into ad-spends and promotions.

In the Q1FY24 results, the Badshah Masala division showed strong synergy and high growth, registering a 22 per cent increase in revenues and aiming to achieve ₹5 billion. Dabur’s focus on expanding allopathy and ayurvedic doctor coverage, alongside advocacy efforts, is expected to drive performance for its Healthcare vertical.”

The shares went up by 2.96 per cent to ₹571 at 12.09 am on BSE.

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