Dabur India posted a consolidated net profit of ₹475.94 crore in Q3 FY23, down 5.4 per cent as against ₹503.32 crore in the year-ago period. Consolidated revenue stood at ₹3,043.17 crore, up 3.4 per cent.
In an investor call on Tuesday, Mohit Malhotra, CEO, said industry growth rates further moderated, inflationary challenges persisted and an impact of deficient rainfall in UP and Bihar was visible on rural demand, during the quarter.
Rural recovery
Malhotra said the impact of inflationary pressures was more pronounced in rural markets. “Consumers are downtrading in rural markets and so cheaper products are the ones that are selling. Shift to more affordable and smaller packs led to rural growth lagging urban markets for the second quarter in a row,” he added.
“We are hopeful of a recovery in rural demand on the back of increased government spending in areas such as infrastructure development. With the expectation of a good winter crop, we believe incomes in the hands of rural consumers will see an uptick. We believe the gap in rural and urban growth will come down going forward,” he added.
The new tax structure announced in the Budget will also aid in increasing disposable incomes in the hands of the middle class, Malhotra said.
Category wise growth
“Among channels, e-commerce was the standout performer with 40 per cent growth and now contributes to around 9 per cent of our revenue. Modern trade also saw double-digit growth,” he said.
Dabur’s home care business ended the quarter with a growth 18.2 per cent, Ayurvedic OTC business grew 16.8 per cent, while the digestives category reported a 11.2 per cent growth in Q3. The company’s food & beverages business reported a 6.4 per cent growth, while the toothpaste business posted a 3.2 per cent growth.
“Dabur’s international business reported a growth of 14 per cent in constant currency terms. The Turkey business grew 97 per cent, while the Egypt business was up 35 per cent. The sub-Saharan Africa business reported a growth of 17 per cent, while the SAARC market grew 8 per cent,” it added in a statement.