Homegrown FMCG major Dabur India Ltd on Tuesday reported a 28.42 per cent increase in consolidated net profit to Rs 438.30 crore for the quarter ended in June 2021 on higher domestic sales.
The company had posted a net profit of Rs 341.30 crore in the April-June quarter a year ago, Dabur India said in a BSE filing.
Its revenue from operations was up 31.89 per cent to Rs 2,611.54 crore during the quarter under review compared to Rs 1,979.98 crore in the corresponding quarter of the previous fiscal.
"Continued investments behind the Power Brands and increasing distribution footprint, coupled with a structured and balanced approach to driving cost management, helped Dabur India Ltd overcome the challenging context of COVID second wave and report a strong Topline and Bottomline performance in the quarter ended June 30, 2021," Dabur India said in a post earning statement.
Dabur India CEO Mohit Malhotra said the company applied earnings from last year on streamlining the supply chain to ensure minimal disruption in supplies while firmly focusing on delivering volume-led profitable growth.
"Our Operating Margin reported a 32.5 per cent growth during the quarter, which marked a 10 bps gain despite high inflationary pressures. Our Pre-Tax Profit also grew by a robust 34 per cent during the quarter," said Malhotra.
Dabur continued to post strong growth and market share gains across all key verticals like health care, home care, personal care and foods in Q1 2021-22.
During the quarter, Dabur continued to invest in expanding rural footprint.
"We have expanded our rural coverage by 16 per cent, from 60,000 villages at the end of 2020-21 to 69,000 villages in Q1, 2021-21. We plan to further expand it by 33 per cent to 80,000 villages over the next two years," Malhotra added.
Besides, its e-Commerce sales reported an over 100 per cent growth and now contributes to 8.2 per cent of the India FMCG business, the statement added.
In Q1/FY 2021-22, Dabur''s revenue from the consumer care business segment was up 25.02 per cent to Rs 2,167.93 crore as against Rs 1,734 crore in the year-ago period.
"The revival in discretionary spending continued during the quarter, which helped the home & personal care business grow by over 26 per cent. The hair care category was up nearly 39 per cent during the first quarter, while the Home Care business grew by over 30 per cent and the oral care business by over 21 per cent," it said.
Revenue from food business was up 85.22 per cent to Rs 402.48 crore as compared with Rs 217.29 crore in the year-ago period.
"Our relentless focus on innovation, a widened product portfolio and a revival in in-home consumption in line with the growing consumer need for health helped Dabur''s Food & Beverages business end Q1, 2021-22 with an 80.4 per cent surge," it said.
However, its retail business was down to Rs 9.17 crore from Rs 2.03 crore in the corresponding period of the previous year.
While revenue from other segments was up 17 per cent to Rs 25.53 crore as against Rs 22.11 crore.
While, Dabur's International Business reported a growth of 34 per cent in Constant Currency terms in April-June quarter.
"The MENA business grew by nearly 49 per cent, while the Egypt business was up 43 per cent, Namaste (US-based personal care firm) by over 40 per cent and the SAARC business posted a growth of 41 per cent during the quarter," it added.
Meanwhile, in a separate filing, Dabur India said its board in a meeting held on Tuesday also appointed former Home Secretary and ex Comptroller and Auditor General of India - Rajiv Mehrishi as an additional director, in the category of Non-Executive Independent Director, on the Board of the Company with effect from September 1, 2021, for a term of five years.
Shares of Dabur India Ltd closed higher by 2.47 per cent at Rs 614 on BSE on Tuesday.