Dabur India Limited announced its Q3 earnings on Thursday and reported a 5% y-o-y decline in its consolidated Net Profit at Rs 476.55 crore for the period under review. During the corresponding period of the previous year, its net profit stood at Rs 504.35 crore.
However, the company reported a moderate growth of 3.4% yoy in its revenue at Rs3,043.20 crore in Q3FY23 as compared to Rs2,941.75 crore in Q3FY22. This is the slowest growth witnessed by the company since the April-June quarter of the fiscal year 2020.
The company highlighted in its statement that due to the inflationary pressures in the rural market, it is facing many headwinds.
The impact of inflationary pressures was more pronounced in rural markets, where marked downtrading and a shift to more affordable and smaller packs resulted in rural growth lagging urban markets for the second quarter in a row for Dabur, according to Dabur CEO Mohit Malhotra in a statement.
Dabur's homecare business increased by 18% year on year. In Q3, the Ayurvedic OTC business increased by 17%, while the digestives category increased by 12%.
The food and beverages business grew by 6.4% during the quarter, while the toothpaste business grew by 32%, driven primarily by consistent demand for the flagship Dabur Red paste.
At around 9.30 AM, Dabur India was trading 2.51% lower at Rs540.55, against the previous close of Rs554.45 on NSE. The counter opened at Rs562, and so far, hit an intraday low of Rs539.45.
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