Dabur Q4 profit jumps 19% to Rs 4 bn; earnings grow 6% to Rs 21 bn

Dabur's international sales in January-April period were up 16.8% in constant currency terms

FMCG major Dabur India on Tuesday reported a 19.04 per cent increase in consolidated net profit at Rs 3.97 billion for the fourth quarter ended March 2018 on strong volume growth and rise in operating margin.

The company had posted a net profit of Rs 3.33 billion in the January-March period a year ago, Dabur India said in a BSE filing.

Total income during the quarter under review grew 6.38 per cent to Rs 21.06 billion, against Rs 19.79 billion in the corresponding quarter a year ago.

"We have delivered another strong performance in the quarter with our India operating margin touching a historical high of 27.2 per cent. Our operating margin has increased on the back of improved operating efficiencies and judicious cost management," said Dabur India CEO Sunil Duggal.

Dabur's total Q4/FY2017-18 expenses were up 3.56 per cent to Rs 16.03 billion as against Rs 15.48 billion.

"The domestic FMCG business reported an underlying volume growth of 7.7 per cent during the quarter," Dabur India said in a statement.

Its revenue from consumer care business was up 8.16 per cent to Rs 16.77 billion in the fourth quarter of FY 2017-18 as against Rs 15.50 billion in the corresponding quarter a year ago.

Its revenue from food business was down 1.54 per cent to Rs 2.93 billion as against Rs 2.98 billion in the corresponding period of the previous fiscal.

Retail business was also down 9.33 per cent to Rs 278.9 million during the quarter as against Rs 307.6 million. The other segment was also down 15.39 per cent to Rs 248.4 million as against Rs 293.6 million.

Dabur's international sales in January-April period were up 16.8 per cent in constant currency terms.

"Sales in GCC markets grew 51 per cent led by Saudi Arabia which reported an 82 per cent growth during the quarter. The Business in Egypt reported a 38 per cent growth while sales in Nepal grew by around 19 per cent," it added.

For the financial year 2017-18, net profit was up 6.04 per cent to Rs 13.57 billion as against Rs 12.80 billion in FY 2016-17.

Its total income was at Rs 80.53 billion, marginally up to 0.67 cent in 2017-18 as against Rs 79.99 billion in the previous fiscal.

Dabur has also recommended 625 per cent dividend, which is Rs 6.25 per equity share having face value of Re 1 each for the financial year 2017-18.

"The board of directors today recommended a dividend of 625 per cent, which includes a final Dividend of 125 per cent and a one-time special dividend of 500 per cent. This brings the Total Dividend for the year to 750 per cent," the company said.

Shares of Dabur India were trading at Rs 369.70 on BSE, up 0.90 per cent.