Dabur India Q3 net rises 13%; GST, exchange rate impact topline growth

Dabur India, the fast moving consumer goods major, posted Rs 3.33 billion net profit in December quarter. During the period, its profit surged 13 per cent year on year (y-o-y) from Rs 2.94 billion. Dabur’s operating revenue grew 6.1 per cent y-o-y – from Rs 18.5 billion in Q3FY17 to Rs 19.7 billion. However, lingering effects of goods and services tax (GST) and currency fluctuations impacted its topline.
GST and currency exchange rate brought down its revenue growth by 3.3 per cent and 3.6 per cent, respectively, as its adjusted growth rate during the quarter stood at 12.9 per cent, Dabur said. Impact of GST was more profound in its domestics business that now contributes more than 70 per cent to its topline, up from 65.5 percent. Its domestic revenue grew 13 percent.

However, it said, GST adjusted domestic growth remained at 17.7 per cent. India business stood at Rs 14.5 billion – up from Rs 12.8 billion.
The international business that now forms 27 per cent of Dabur’s revenue pie, compared to 30.5 per cent same quarter previous year, grew five per cent on constant currency terms. However, currency devaluation in overseas markets resulted in translation loss of Rs 660 million.
“While the global macroeconomic environment continues to be challenging and competitive intensity remains high, we have delivered a strong performance during the quarter by efficiently managing the risks and challenges. We are confident of successfully tapping the significant growth opportunities to deliver strong and sustainable long-term growth on the back of the power of our brands and the investments we are making behind our brands,” said Sunil Duggal, chief executive officer, Dabur India.
Largest business segment – Health supplements that contribute 24 per cent to Dabur’s domestic sales, registered 19.5 per cent growth. Haircare and oral care forms 34 percent of local sales, grew 23 per cent.
According to Duggal, the firm has lined up a number of new offerings and will aggressively launch them by leveraging its Ayurveda tag.
Dabur stock went down by 1.17 per cent in Bombay Stock Exchange to close at Rs 354.35. The Sensex slid by 0.19 per cent and closed at 35,965.02.business-standard