Dabur India Ltd, the Indian FMCG giant, reported splendid earnings in the September quarter. The company reported volume growth of 16.8% year-on-year basis. The growth surpassed the expectations of the market, owing to the growth in sales in their healthcare segment. This segment’s total sales were 39.6%.
In the Dabur India Ltd investors presentation, the company claimed that the sales grew twice in the September quarter which helped the company in increasing its market share in 190 basis points categories.
Dabur India Q2 Results (year-on-year):
- Net profit increased by 20%, Rs 482.86 crore
- Consolidated revenue rose 14%, Rs 2,516.04 crore
- Ebitda (Earnings Before Interest, Taxes, Depreciation, and Amortization) rose 16%, Rs 569.43 crore
- Margin stood at 22.6% against 22.1% a year ago
As per the analysis, strong sales growth is due to the company’s strong presence in the rural market. According to the company’s estimation, rural India contributed around 40-45% to overall revenue growth. Dabur flagship products and Dabur Honey, contributed double-digit sales growth in the September quarter.
The company’s home care and hair oil segment had a disappointing year, and their share in overall sales declined in the second quarter. There was revenue growth of 5.5% in the international business counterpart. However, the total contribution in overall sales slumped from 28.2% in Q2FY20 to 26% in Q2FY21.
The company’s share price rose more than 3% intraday on the National Stock Exchange (NSE) due to their good performance. The stock trades at a one-year forward price-to-earnings, multifold 48 times and valuation gave the company an upper-hand over its competitors.
