Dabur India Q2 Net Profit Surges 18.7 per cent

Dabur India is an Ayurveda and natural health care company. It is engaged in manufacturing and marketing of fast moving consumer goods and Ayurveda products. Dabur operates in key consumer product categories like hair care, oral care, health care, skin care, home care & foods.

Dabur India posted its Q2FY16 results, wherein the Net Sales of the company marginally rose by 1.36 per cent to Rs 2092 crore in Q2FY16 compared to Rs 2069.5 crore in Q1FY16. The total expenses reduced by 3.13 per cent to Rs 1724.6 crore on sequential basis. The EBITDA increased by 25.72 per cent to Rs 404.49 crore, EBITDA margin expanded by 111 basis points to 19.3 per cent Q-o-Q basis.

Profit before interest and taxes increased by 28.54 per cent to Rs 371.62 crore on quarterly basis. During the quarter, the other income of Dabur rose by 14.27 per cent to Rs 54.69 crore, finance cost of the company increased by 5.64 per cent to Rs 12.36 crore Q-o-Q basis. Tax expenses grew by 15.21 per cent to Rs 72.78 crore on quarterly basis. The Net Profit of Dabur jumped by 30.65 per cent to Rs 341.13 crore in second quarter of FY16 against Rs 261.11 crore in first quarter of FY16. The Net profit of Dabur surges by 18.7 per cent to Rs 341.13 crore on yearly basis.

During the Quarter, there was a robust growth in key consumer categories like Toothpastes, Hair Oils and Home Care. In a low growth and challenging business environment where growth rates in most consumer products segments remained under pressure, Dabur remained committed to deliver profitable growth. The Company reported good growth across key categories and grew ahead of the market.

On category front, the Oral Care business for Dabur, led by Dabur Red Paste and Meswak, continued to move forward on its strong growth of around 19 per cent on quarterly basis growth. The Hair Oils business also reported an over 14 per cent growth during the quarter. The Home Care business rose in the quarter with an over 12 per cent. while the OTC & Ethicals business ended the period with a near 11 per cent growth.

Dabur launched a host of new products and variants across geographies, all have received good response. During the quarter, Dabur extended the Hajmola brand to the beverage market with the launch of Hajmola Yoodley and also strengthened its presence in the professional skin care market with the launch of two new products under the OxyLife brand. In addition, the hair oil portfolio was expanded with the launch of Vatika Jasmine. Dabur’s International Business recorded good growth during the second quarter, despite disturbances in key geographies.

FII holdings of Dabur reduced by 17 basis points to 20.96 per cent, DII holdings also reduced by 20 basis points to 4.42 per cent. Today, Dabur is trading at Rs 272.4, higher by 0.33 per cent.