New Delhi: Dabur India’s quarterly consolidated profit rose 31%, led by increased sales in its two key units, and its finance chief on Wednesday said the firm would maintain its growth pace in 2009/10 as well.
The maker of Dabur Amla hair oil and Vatika shampoo would improve its core margins by up to 1 percentage point in the year that began 1 April, on cooling commodity prices and cost reductions at the firm, said chief financial officer Rajan Verma.
“We believe (sales) growth the next year will mirror this year’s growth, again on a higher base,” Verma told Reuters over the telephone. “There will be launching of new products, and as a result of that we will maintain the growth momentum in our core consumer care business.”
Asked about commodity prices, which had hit record levels in the September quarter, Verma said Dabur’s raw material costs had come down in the March quarter from the previous quarter, and would continue to decline.
“Coupled with other initiatives we have taken in managing our costs ... we will see some marginal growth in margins this financial year,” he said. “But nothing dramatic will happen.”
Over three-fourths of the firm’s revenue comes from its consumer care unit that makes hair oils and shampoos, while another 7.5% is from its consumer health business.
Shares in Dabur closed 1.8% higher at Rs103.55 on a BSE index Sensex that rose 3.65%. The stock had climbed up 17.5% in the March quarter, outperforming the broader market’s 0.6% rise.
In the January-March quarter, Dabur India’s profit rose to Rs10.4 million from Rs8 million a year earlier. Revenue rose by a fifth to Rs73.7 million.
Core margins, that exclude interest, taxes, depreciation and amortization, were at 18.3%, Verma said.
The growth was largely driven by increased sales of hair oils and shampoos, Dabur’s chief executive Sunil Duggal said in a statement.