Dabur clocks 10 pc rise in Q3 profit at Rs 367 cr

Homegrown FMCG major Dabur India on Thursday reported 10.26 per cent rise in consolidated net profit at Rs 367.21 crore for December quarter 2018 helped by cost management initiatives and strong growth in domestic market.

The company had posted a net profit of Rs 333.03 crore in the year-ago period, Dabur India said in a BSE filing.

Total income in the latest quarter was at Rs 2,274.46 crore, up 11.88 per cent from Rs 2,032.78 crore in the same period of the previous fiscal.

The company's board on Thursday also approved appointment of Mohit Malhotra as the new CEO with effect from April 1, 2019. He is currently in the role of CEO of India Business of the company and will succeed Sunil Duggal.

Dabur India Chairman Anand C Burman said that during the last few years, the board was working on a succession plan to identify Duggal's successor, who is the CEO since 2002.

"As a result of this process, Malhotra was found to be suitable as a successor to Duggal. Therefore, on the recommendation of the Nomination and Remuneration Committee, the Board today approved the appointment of Malhotra as the new CEO of Dabur India," he said.

Duggal will remain a whole-time director till May 15, 2019 and then continue as a Non-Executive Director till July 30, 2020, the company said.

Commenting on the quarterly results, Dabur India said "prudent cost management initiatives coupled with strong growth" in the domestic market across its key business categories helped mitigate the weaker economic indicators.

"Dabur India ended the quarter with double-digit volume growth and also reported market share gains across key categories," the company said.

Dabur's total expenses in the latest quarter were at Rs 1,815.41 crore as against Rs 1,616.63 crore in the year-ago period.

Revenue from consumer care business was up 12.66 per cent to Rs 1,911.56 crore during the quarter.

"Dabur's shampoo business grew 25.2 per cent and hair oil business was up 23.6 per cent during December quarter of 2018-19, helping the hair care category report a nearly 24 per cent growth during the quarter," said Dabur.

Its skin & salon business ended the quarter with a 19.3 per cent growth, while the OTC & Ayurvedic Ethicals business grew 17.6 per cent.

Dabur's business in Pakistan, Bangladesh and Turkey reported strong double-digit growths in local currency terms, it added.

Revenue from food business was at Rs 226.60 crore, up 7.55 per cent as against Rs 210.69 crore.

Retail business was at Rs 34.24 crore as compared to Rs 32.09 crore earlier. Other segments stood at Rs 21.42 crore. Shares of Dabur India on Thursday settled at Rs 443.25 apiece on BSE, up 2.88 per cent from previous close.

(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)