FMCG major Dabur India reported a 5.5 percent year-on-year fall in consolidated net profit to Rs 476.6 crore for the quarter ended December 2022.
Net profit stood at Rs 504 crore in the same quarter a year ago, Dabur said in a stock exchange filing on February 2.
However, revenue from operations grew 3.5 percent YoY to Rs 3,043 crore from Rs 2,942 crore in Q3 FY22. Revenue crossed the Rs 3,000-crore mark for the first-time ever, said the company.
ALSO READ: Dabur India shares trade sharply lower on weak Q3 business updates
On the operating front, EBITDA (earnings before interest, taxes, depreciation and amortization) fell 2.7 percent to Rs 610.4 crore. Operating margins fell 100 basis points to 20.1 percent from 21.3 percent YoY.
"The impact of inflationary pressures was more pronounced in the rural markets as marked by downtrading and shift to more affordable and smaller packs. Rural growth lagged urban markets for the second quarter in a row for Dabur," Chief Executive Officer Mohit Malhotra said.
Thus, overall volumes for Dabur declined in the quarter by 3 percent against Street expectations of 2 percent YoY growth.
However, the FMCG firm now believes that demand slump in rural has bottomed out. "We are seeing some green shoots of revival in demand
in the hinterland. We are hopeful of rural demand reporting a smart recovery on the back of a record farm output and increased government spending," he added.
As per the earnings press release, Dabur's lndia business reported a growth of 3.3 percent with steady market share gains across portfolio, despite most operating categories reporting a decline. The international business reported a growth of 14 percent in constant currency terms.
Coming to category growth, home care business grew 18.2 percent, Ayurvedic OTC business grew 16.8 percent and digestives grew 11.2 percent.
Food & Beverages business reported 6.4 percent growth, while the flagship toothpaste business ended Q3 with a 3.2 percent growth.
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