Dabur India Q1 net profit up 5% to Rs 464 crore

NEW DELHI: FMCG major Dabur India on Thursday said its consolidated net profit increased 5 per cent to Rs 464 crore in the June quarter on the back of robust sales. The company had reported a net profit of Rs 440 crore in the April-June period of the last fiscal.

The company's total income rose to Rs 3,240 crore in the first quarter of the current fiscal from Rs 2,923 crore in the year-ago period, Dabur India said in a regulatory filing on Thursday.

"We remain committed to our strategy of superior go-to-market execution by enhancing our distribution footprint while focusing on driving growth for our power brands and building an agile organisation culture in our pursuit of sustainable, balanced growth and value creation," Dabur India chief executive officer Mohit Malhotra said.

The company has taken several measures to pursue greater efficiency and the gains were ploughed back in the form of higher investments to drive demand, he added.

"Our media spends grew 30 per cent in the consolidated business and 28 per cent in the India business," Malhotra said.

He noted that with inflation softening, the company has seen its rural growth bounce back to high single digits after three quarters.

While rural growth continues to lag urban demand, the gap has reduced significantly, Malhotra said.

"We continue to strengthen our long-term competitiveness through investments in developing consumer-centric innovations and technology, as we deliver on our purpose of health and well-being for every household," he added.

Shares of the company closed nearly 2 per cent down at Rs 554.70 apiece on the BSE.