New Delhi: Personal care and food products maker Dabur India’s quarterly profit rose 11% on strong volumes, price hikes and cost efficiencies, a senior officials said.
Dabur reported a consolidated profit of Rs154 crore for October-December quarter, against Rs139 crore in the year-ago period. Sales rose 16.7% to Rs1,080 crore.
“Demand continues to be good for our products but inflation concern is always there,” chief financial officer S. Raghunathan told Reuters over the telephone. An overall economic buoyancy and rural job creation through goverment programmes had boosted demand, he said.
Peers Marico Ltd and Emami Ltd reported a 12% and 9% jump in profit respectively.
Dabur’s profit was partly hurt by higher minimum alternative tax (MAT), which effectively rose to 19.93% from about 18% a year ago, Raghunathan said.
The wholesale price index, the most widely watched inflation gauge in India, rose 8.43% in December from a year earlier, compared with 7.48% in November.
Dabur, which increased some product prices in December-quarter-mainly 4-5% in hair oil category, may raise prices again in January-March.
“We don’t rule out price increase, but we will take it in a very calibrated way,” Raghunathan said, adding commodity-based items such as hair oil and glucose may see a price hike in January-March.
Dabur’s food category grew about 42%, while home care clocked a 24% growth and international business about 33%.
The company expects margins in the January-March quarter at 20% in line with the December-quarter.
Shares in Dabur, valued at about $3.5 billion, ended 3% up on Monday in a Mumbai market that fell 0.37%.