Dabur Q2 net profit up to 7 pcs at Rs 403.64 rupees
New Delhi, November 5 () The main local producer of consumer goods, Dabur India, reported on Tuesday a 6.91 percent increase in consolidated net profits to Rs 403.64 million for the second quarter that ended the September 30th.
The company had published a consolidated net profit of Rs 377.55 crore in the same fiscal quarter last year, Dabur India said in a regulatory presentation.
The net profit was affected by a unique deterioration in the value of the investments worth Rs 40 crore, said the firm.
Revenue from operations was Rs 2,211.97 million rupees compared to Rs 2,124.97 rupees in the same period last year, a growth of 4.09 percent, he added.
Commenting on financial performance, the executive president of Dabur India, Mohit Malhotra, said the domestic business continued to face strong winds against it in the form of a sustained slowdown in demand, compounded by the liquidity crisis in the market.
While we continue to face winds against macroeconomics, Dabur has efficiently managed the risks and challenges to achieve stable performance, he said.
The increase in investment behind brands and innovation is clearly paying off with Dabur brands growing ahead of the categories and gaining market share, despite the tough operating conditions, Malhotra said.
Dabur continues to focus on brand building in key categories while leveraging its strong herbal and Ayurvedic heritage, he said, adding that the company also continued to expand its distribution expansion strategy in rural India.
During the second quarter of 2019-20, we have expanded our rural footprint to more than 51,000 villages, compared to 48,000 villages in June 2019. Following this expansion, rural demand continues to grow ahead of Dabur's urban demand, said Malhotra.
The company said its Board of Directors has declared a provisional dividend of 140 percent for 2019-20. Continuing with our payment policy, the Board has declared a provisional dividend of Rs 1.40 per share, adding a total payment of Rs 298.25 rupees, including taxes, said the president of Dabur India Ltd, Amit Burman. RKL BAL