Homegrown FMCG major Dabur India on Tuesday reported a 19.5 per cent rise in consolidated net profit at Rs 481.7 crore for the second quarter ended September 30, 2020, as against Rs 403.64 crore in the year ago period. This growth was attributed to strong demand for its Ayurvedic healthcare, hygiene and nutrition products, coupled with innovation to meet the emerging consumer needs in the wake of the COVID-19 pandemic.
The e-commerce business for Dabur grew by over 200 per cent in Q2 FY21 and had a saliency of 6 per cent as compared to 2.1 per cent a year earlier, Dabur India said in a filing to the BSE.
For the July-September quarter, Dabur posted a 13.7 per cent growth in consolidated revenue at Rs 2,516 crore, up from Rs 2,212 crore a year earlier. "This is the highest revenue growth reported by the company in the last couple of years," it said.
Dabur's India FMCG business led the growth with a 19.8 per cent surge, with an underlying FMCG volume growth of 16.8 per cent during the quarter under review. Its FMCG portfolio in India includes nine power brands - Dabur Chyawanprash, Dabur Honey, Dabur Lal Tail, Dabur Honitus and Dabur PudinHara in the healthcare space; Dabur Amla, Dabur Red Paste and Vatika in the personal care category; and Real in the foods category.
Commenting on Q2 results, Dabur India Chief Executive Officer Mohit Malhotra said: "While COVID-19 continues to impact people around the world, Dabur India Ltd's strategic business transformation exercise to develop and implement aggressive growth strategies in the core business areas and successfully address the emerging challenges helped us deliver a healthy topline growth accompanied by an expansion in margin."
"Our domestic healthcare business reported a strong 49 per cent growth, with the recent consumer-relevant innovations contributing to around 5-6 per cent of our revenue. Our international business has also staged a smart recovery and reported a growth of 5.5 per cent despite the key GCC market continuing to face macro-economic headwinds," he added.
Dabur's board has declared interim dividend of Rs 1.75 per equity share having face value of Rs 1 each (i.e. 175 per cent) for the financial year 2020-21. The dividend will be paid November 25, 2020 onwards by the company, it said.
The board also appointed Mukesh Hari Butani as an additional director, in the category of non-executive independent director, on the board of the company effective January 1, 2021 for a term of five consecutive years.
Meanwhile, shares of Dabur India ended Tuesday's trade at Rs 515.45, up 1.84 per cent, against previous closing price of Rs 506.15 on the BSE.