Dabur Q3 results: Net profit rises 7% to Rs 560 crore, revenue up 6%

Dabur Q3 results: Net profit rises 7% to Rs 560 crore, revenue up 6%

• Dabur's Q3 profit rose 7 percent to Rs 560 crore, matching analyst estimates
• GST cuts boosted demand for Dabur products, aiding double-digit sales growth
• Dabur foresees growth with 60% of its portfolio taxed at 5%.

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FMCG firm Dabur reported third-quarter profit largely in line with analysts' estimates on January 29, as the demand boost from the country's consumption tax cuts offset the one-time charge from new labour codes.

Sales of Dabur's honey and other products such as toothpaste, hair oils, and coconut water grew in the double digit percentage in the quarter, the company said in a business update earlier in the month.

The GST cut implemented last year boosted demand for Dabur and the company expects the effect to continue into the coming quarters, as 60% of its portfolio that was taxed at rates of 12% and 18% are now taxed at 5%.

As demand improves and recent good and services tax cuts offer additional support, Dabur is well‑positioned for the coming quarters, CEO Mohit Malhotra said in a statement.

"Dabur delivered a steady quarter, with healthy volume-led growth across our key business verticals and geographies. We have sharpened our competitive edge through stronger innovation and focused brand building, leading to healthy market share gains. As demand conditions improve, the combination of favourable macroeconomic indicators and expectations of supportive policy measures, reinforced by recent GST changes, positions us well for the quarters ahead, and we remain confident of delivering sustainable growth, resilient profitability, and continued shareholder value," said Malhotra.

Consumer demand has been gradually improving in India, multiple consumer firms have said, as a sustained moderation in inflation and the government's income tax cuts increase appetite for spending.

Dabur's consolidated net profit rose 7% to Rs 560 crore for the quarter ended December 31. Analysts had expected, on average, Rs 556 crore, as per LSEG data.

Total revenue grew 6% to Rs 3,559 crore.

The company took a one-time hit of 150.5 million rupees due to the implementation of India's new labour codes, the biggest overhaul of workers' laws in decades.

On January 29, Dabur India shares closed 1% lower at Rs 510 apiece. The results were announced in post-market hours.