Dabur India fell 4.12% to Rs 160.70 at 15:23 IST on BSE as earnings before interest, taxes, depreciation and amortization margins softened in Q3 December 2013 over Q3 December 2012.
The company announced the result during trading hours today, 22 January 2014.
Meanwhile, the BSE Sensex was up 67.66 points, or 0.32%, to 21,318.78.
On BSE, so far 5.62 lakh shares were traded in the counter, compared with an average volume of 1.31 lakh shares in the past one quarter.
The stock hit a high of Rs 168 and a low of Rs 160.25 so far during the day. The stock hit a record high of Rs 184.90 on 28 October 2013. The stock hit a 52-week low of Rs 125.05 on 28 February 2013.
The stock had underperformed the market over the past one month till 21 January 2014, rising 0.24% compared with the Sensex's 0.81% rise. The scrip had also underperformed the market in past one quarter, falling 1.67% as against Sensex's 1.71% rise.
The large-cap company has an equity capital of Rs 174.38 crore. Face value per share is Re 1.
Dabur India said it delivered a robust operating performance during Q3 December 2013 despite a challenging business environment where macro-economic headwinds dampened consumer confidence and moderated consumption spending.
Riding on strong volume-driven growth across its key categories of health supplements, air care, hair care, oral care, skin care and foods, Dabur reported a 15% rise in consolidated net profit to Rs 242.90 crore on a 16.8% growth in net sales to Rs 1904.30 crore in Q3 December 2013 over Q3 December 2012.
Consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) increased by 14.5% to Rs. 331.50 crore in Q3 December 2013 over Q3 December 2012. EBITDA margin was reported at 17.4% for Q3 December 2013, lower than 17.7% in Q3 December 2012. Margins softened as there was an uptick in advertising spends.
Dabur India's advertising and publicity expense rose 23.2% to Rs 289.60 crore in Q3 December 2013 over Q3 December 2012.
Employee expense rose 21.5% to 158 crore in Q3 December 2013 over Q3 December 2012.
"We have delivered another quarter of strong volume-led growth. Dabur has been reporting strong and consistent performance despite intensifying competitive pressures and the challenging market environment being witnessed for some quarters now. Our focus on brandbuilding and market expansion programs coupled with a greater degree of innovation has helped Dabur sustain strong growth in the core categories, which have been significantly ahead of the market. Going forward, our focus will be on pursuing an aggressive and profitable growth strategy," Dabur India Chief Executive Officer Mr. Sunil Duggal said.
The health supplements business for Dabur was a key driver of growth during the quarter, reporting a strong 19.5% surge. The air freshener business for Dabur, under the brand Odonil, continued to surge ahead with an over 27% growth during the quarter. Dabur's Foods business also reported a robust near 18% growth. The shampoo business for Dabur ended the third quarter of 2013-14 fiscal with a strong 24.7% growth. The toothpaste business grew by over 14% while the skin care category reported an over 13% growth during the quarter. The quarter saw Dabur introduce a host of new products and variants, including the new Fem Fairness Naturals facial bleach range and Vatika Hibiscus hair care range.
Dabur's international business ended the quarter with a 26% growth, led by strong performance in GCC, Egypt and Nigeria. "The GCC business reported a 21% growth, while sales in Egypt and Nigeria both grew by 16%. Going forward, we will continue to pursue an aggressive growth strategy," Dabur India Group Director Mr. P D Narang said.
Dabur India is one of India's leading FMCG companies. Dabur operates in key consumer product categories like hair care, oral care, health care, skin care, home care and foods.
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