Dabur India Q3 Results: Profit Down 3%, Margin Shrinks On Inflation Woes

Dabur India Ltd.'s quarterly profit fell, missing estimates, and margins shrank due to currency fluctuation and inflation in its international business.Net profit attributable to shareholders of the ayurveda products maker fell 3% over the previous quarter to Rs 475.94 crore in the quarter ended December, according to an exchange filing. That compares with the Rs 494.7-crore consensus estimate of analysts tracked by Bloomberg.Dabur India Q3 Highlights (QoQ)Revenue rose 2% to Rs 3,043.17 crore, against an estimate of Rs 3,091.14 crore.Operating profit rose 2% to Rs 609.88 crore, compared to the Rs 605.9-crore forecast.Margin came in at 20% against 20.1%. Analysts had projected it at 19.6%.Dabur's international business reported a growth of 14% in constant currency terms'We have delivered steady results in what continues to be a difficult cost and operating environment,' said Dabur's Chief Executive Officer Mohit Malhotra. 'We continued to adjust prices responsibly to reflect inflation.'Malhotra said the company's domestic business reported a growth of 3.3% with a three-year compound annual growth rate of 9.5% and steady market share gains across the portfolio, despite most operating categories reporting a decline.Category-Wise:Homecare business ended the quarter with 18.2% growth.Health supplements grew 0.4%. The category returned to a positive growth trajectory after navigating a high base during the last two years of Covid.Digestives category reported 11.2% growth.Food and beverages business reported 6.4% growth.The Ayurvedic OTC business grew by 76.8% in the third quarter.Oral care grew 2.6%. The toothpaste business, led by steady demand for the flagship Dabur Red paste, ended the quarter with 3.2% growth.Hair oils portfolio recorded 2.4% decline on account of 5% decline in the category. Market share for the hair oils portfolio, however, improved by 70 basis points to touch the highest-ever mark of 16.2%.Shampoos portfolio saw 3.6% growth on a high base of 21% growth.Skin and salon business was impacted by delayed winter. The business saw 5.6% decline.The impact of inflationary pressures was more pronounced in the rural markets, as marked downtrading and a shift to affordable and smaller packs led to rural growth lagging urban markets for the second quarter in a row for Dabur, Malhotra said.'However, we believe that this demand slump in rural areas has bottomed out, as we are now seeing some green shoots of revival in demand in the hinterland. We are hopeful of rural demand reporting a smart recovery on the back of record farm output and increased government spending.'The urban growth, he said, would be driven by softening of inflation and buoyancy in new-age channels like modern trade and e-commerce.Shares of Dabur fell 1.26% after the results were announced as against a flat Nifty.

Dabur India Q3 Results: Profit Down 3%, Margin Shrinks On Inflation Woes

Dabur India's Q3 revenue rose 2% to Rs 3,043.17 crore against an estimate of Rs 3,091.14 crore.

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Dabur India Q3 Results: Profit Down 3%, Margin Shrinks On Inflation Woes

Dabur India's Q3 revenue rose 2% to Rs 3,043.17 crore against an estimate of Rs 3,091.14 crore.

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