Dabur to make additional investment of Rs 9.68 bn in Nepal
Indian fast-moving consumer goods company Dabur has decided to make an additional investment of Rs 9.68 billion in Nepal.
The Indian FMCG brand Dabur India Ltd on Wednesday reported a net profit of Rs 490.86 crore for the second quarter ending September.
The company saw a decline of 2.85 per cent YoY in its net profit in comparison to Q2 of the financial year (FY) 2022. It had posted a net profit of Rs 505.31 in the same period in the last financial year.
However, it reported a rise of 6 per cent in its revenue from operations to Rs 2,986.49 crore during Q2FY23 against ₹2,817.58 crore recorded in Q2FY22.
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The Board of Directors of Dabur India Ltd declared an Interim Dividend of 250% for 2022-23 Rs 2.50 per share. A sum of Rs 442.94 Crore will be paid as a dividend.
The company also announced to acquisition 51% shareholding of Badshah Masala Private Limited. This is said to be a strategic move for Dabur to grow its food business.
“The company performed very well in a very challenging environment of unprecedented inflation and consequential reduction in purchasing power. This helped in delivering steady organic growth,” Dabur India said in its regulatory filing.
Mohit Malhotra, Chief Executive Officer, Dabur India Ltd said, “The economic condition has been very challenging since the pandemic and is still a matter of concern. It has reduced the purchasing power but with the ongoing festive season, there is a sign of recovery in the market.”
He further added, “The impact of inflationary pressures was more pronounced in the Rural markets with demand growth in hinterland lagging Urban markets for the first time in five quarters. However, we are hopeful of rural demand reporting a smart recovery in the coming quarters.”
Many of Dabur’s brands have seen significant growth in market share. Dabur recorded a 4.10 per cent increase in market share in the category of juices and nectars, while market share in the category of digestives climbed by 2.70 percent.
The other division of Dabur such as Food & Beverage recorded 30% growth, Home Care about 21%, while the Toothpaste sector had over 11% growth for the quarter.
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