Dabur Q3 Results: Profit Rises 7.3% YoY to Rs. 553.6 Crore; Rural Demand Continues to Outperform

Dabur India Q3 results reported a steady performance in the December quarter, with the FMCG major reporting a 7.3% year-on-year (YoY) rise in net profit to Rs. 553.6 crore, compared with Rs. 515.8 crore in the same quarter last year. The company benefited from volume-led growth, strong rural demand and margin improvement, despite a mixed consumption environment.
According to the company's filing, revenue from operations increased 6% YoY to Rs. 3,558.6 crore in Q3, up from Rs. 3,355.3 crore a year ago.

Dabur Q3 Operating Performance Improves

EBITDA rose 7.7% YoY to Rs. 734 crore in the quarter, compared with Rs. 682 crore last year, while EBITDA margin improved to 20.6% from 20.3% on a YoY basis. The margin expansion is because of better operating leverage, cost efficiencies and improving demand conditions.

Notably, Dabur's net profit before exceptional items surged 10.1% YoY to Rs. 575 crore, compared with Rs. 522 crore in the year-ago period.

"Dabur delivered a steady quarter, with healthy volume-led growth across our key business verticals and geographies. We have sharpened our competitive edge through stronger innovation and focused brand building, leading to healthy market share gains," said Dabur India Limited CEO Mohit Malhotra.

He added that improving demand conditions, favourable macroeconomic indicators and expectations of supportive policy measures, including recent GST changes, position Dabur well for the coming quarters.

Rural Demand Outpaces Urban for Eighth Straight Quarter

One of the key highlights of the Dabur Q3 results was Rural demand outperformed urban demand for the eighth consecutive quarter, with syndicated data indicating a 330 basis point gap between rural and urban growth.

Dabur has majorly strengthened its distribution footprint, expanding its total reach by 50,000 outlets during the quarter. The company now reaches over 8.5 million outlets and its rural distribution network spans more than 133,000 villages.

Dabur Shares Today

At the end of trading today, Dabur shares today closed at Rs. 510 down by 1.11% today, the stock in the last five days has gained 4.23%.