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Dabur India Q1 cons net profit dips 10% at Rs 264.86 cr 04/08/2017 16:34

FMCG major Dabur India today reported a 9.80 per cent decline in consolidated net profit at Rs 264.86 crore for the first quarter ended June on account of de-stocking by trade partners ahead of GST rollout.

The company had posted a net profit of Rs 293.64 crore in the April-June period of the last fiscal, Dabur India said in a BSE filing.

Total income during the quarter under review was down 7.04 per cent to Rs 1,871.34 crore, as against Rs 2,013.23 crore in the corresponding quarter a year ago.

"Sales plunged in June across all consumer categories in view of the massive de-stocking by trade channels just ahead of the implementation of the GST. The overseas markets also continued to face severe headwinds with currency devaluations and economic turmoil in key geographies," Dabur said.

Dabur's total expenses were down 7.03 per cent to Rs 1,533.51 crore, as against Rs 1,649.54 crore.

Its revenue from consumer care business was down 9.06 per cent to Rs 1,425.10 crore in the first quarter of FY 2017-18 as against Rs 1,567.16 crore in the corresponding quarter a year ago.

Revenue from food business was at Rs 310.83 crore, up 5.06 per cent as against Rs 327.42 crore in the corresponding period of the previous fiscal.

Retail business was at Rs 27.82 crore during the quarter, down 2.65 per cent, as against Rs 28.58 crore. The 'other segment' was also down 15.39 per cent to Rs 20.77 crore as against Rs 24.55 crore.

Dabur CEO Sunil Duggal said: "Despite the short-term challenges of this transition, we remain positive on the medium-to-long term outlook for the sector and are optimistic that domestic consumer demand would gain pace in months to come."

Meanwhile, shares of the company closed trading at Rs 307.60 apiece, up 0.64 per cent from the previous close on BSE.

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