Dabur Q3 Results: Profit Up 6.2%, Margin Expands Slightly

Dabur India Ltd.’s third quarter profit rose, in line with analysts' estimates, and margin expanded slightly due to higher advertising expenses.

Dabur's international business grew by 11.7% in constant currency terms, driven by Nigeria (54.9), Turkey (43.8%) and Egypt (43.1%), among others.

Separately, the company has earmarked capital expenditure of Rs 135 crore to set up a new plant in South India. Of this, Rs 125.3 crore will be utilised to expand the Red Toothpaste division, while the rest will be utilised for capacity expansion of Odonil and Honey divisions.

Currently, Red Toothpaste, Odonil and Honey have a capacity of 78,142 metric tonne per annum, 10,486 MT per annum and 39,600 MT per annum, respectively, across all its facilities.

These capacities are being utlised at a rate of 81%, 54% and 46%, respectively. Dabur proposes to add another 9,077 MT capacity for Red, and 1,789 MT capacity for the Odonil category.

While Honey business is not seeing capacity additions, lines are being shifted from other units, the company said in a statement.

The entire capex will be funded through internal accruals.

Shares of Dabur India rose 1.5% after the results were declared, as against a 0.8% gain in the benchmark Nifty 50.