Dabur India Ltd.'s quarterly volumes contracted after the coronavirus-related isolation orders stalled most operations.
India business volume of the ayurveda products maker contracted 14.6% year-on-year in the quarter ended March, according to a company presentation.
- Revenue declined 12.3% over the last year to Rs 1,865.4 crore.
- Net profit fell 24.1% to Rs 281.2 crore.
- Margin stood at 18.9% against 21.5% a year ago.
“Dabur was on track to deliver a 4.5% growth in quarterly revenue and 12.5% growth in net profit...had Covid-19 not happened,” the company said in its earnings statement on Wednesday. Dabur's revenue from operations was growing by 4.5% till the end of February, it said.
There was an estimated impact of about Rs 360 crore on revenue from operations and Rs 115 crore on profit after tax during the reported quarter on account of Covid-19, according to the company.
Dabur said its factories were shut in the last week of March due to the lockdown and resumed operations selectively from the second week of April after receiving approvals from all local authorities and with limited manpower.
At present, almost all of the company's factories are operating at 60-70% capacity.
Dabur also expects its revenue from operations and net profit to take a hit of Rs 400-450 crore and Rs 60-80 crore, respectively, in the quarter ending June as coronavirus cases continue to mount in the country. “It's difficult to estimate the impact of Covid-19 on our operations beyond June 2020 at this point of time.”
On Wednesday, Dabur India shares fell 1.04% to Rs 428.75 apiece on BSE while the benchmark Sensex gained 3.25% to end the day at 31,605.22 points. The quarterly results were declared during market hours.
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