Dabur India shares traded lower on Thursday despite the FMCG major reporting double-digit growth in profit and revenue for the June quarter.
The stock declined as much as 4.02% to an intraday low of Rs 416 per share. At around 9:29 am, the stock was trading 3.84% lower at Rs 416.80 apiece. In comparison, the BSE Sensex was trading largely flat with a positive bias at 77,699.
The company reported a 15% year-on-year (YoY) rise in consolidated net profit to Rs 591 crore for the quarter ended June 30, compared with Rs 514 crore in the corresponding period last year.
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Topline, also known as revenue, increased 10.5% YoY to Rs 3,764 crore from Rs 3,405 crore a year earlier.
Operating performance also improved, with earnings before interest, tax, depreciation and amortisation (EBITDA) rising 10.9% YoY to Rs 741 crore from Rs 668 crore. EBITDA margin stood at 19.7%, compared with 19.6% in the year-ago quarter.
During the earnings call, the company said rural India outpaced urban markets for the eighth consecutive quarter, although the gap between rural and urban demand continued to narrow. It added that urban demand was supported by strong growth in modern trade and quick commerce channels.
Chief Executive Officer Mohit Malhotra said Dabur gained 102 basis points in market share during the quarter and continues to focus on premiumisation across its product portfolio.
The company said demand for ayurvedic oral care remained strong, helping it outperform the overall toothpaste market. The honey business delivered high single-digit growth and gained 150 basis points in market share, while the food and beverages portfolio continued to register strong double-digit growth. The 100% juices category grew 45% during the quarter.
Management acknowledged that input cost pressures persisted due to elevated inflation and geopolitical uncertainties but said it remains confident of delivering sequential revenue growth. It also noted that the Badshah spices business has grown to around Rs 400 crore from Rs 220 crore at the time of acquisition, reflecting continued momentum in the brand.
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