Dabur Q4 net up 34%, plans to invest Rs 550 cr towards capacity expansion

CHENNAI: FMCG major Dabur India on Friday reported a 34 per cent jump in its consolidated net profit for the quarter ended March 2021, clocking earnings of Rs 377.29 crore. The company had posted a net profit of Rs 281.60 crore in the January-March quarter a year ago.  Its revenue during the quarter jumped 25.27 per cent year-on-year to Rs 2,336.79 crore, against Rs 1,865.36 crore a year ago.

Dabur India CEO Mohit Malhotra said that Dabur’s growth comes in a challenging market environment. “Dabur’s financial situation remains strong with a 25.6 per cent growth in our operating profit during the fourth quarter of 2020-21. Our India FMCG business led the growth with a 28.3 per cent surge, with an underlying best-ever FMCG volume growth of 25.4 per cent during the fourth quarter of 2020-21,” he said.

Revenue from the consumer care business segment was up 26.36 per cent to Rs 2,009.63 crore, while revenue from its food business rose 24.93 per cent to Rs 274.14 crore. But retail business revenues remained lower by 18 per cent than in the previous financial year at Rs 23.13 crore. Revenue from other segments, however, was up 17 per cent to Rs 23.95 crore. 

“Dabur continued to gain market share across all key categories like shampoos, toothpaste, hair oils, chyawanprash and packaged juices and nectars, during the quarter and the full year,” the company said. Meanwhile, Malhotra told analysts in a post-earnings call that the company will invest Rs 550 crore over the next four to five years to set up a greenfield facility in central India to cater to its east, south, west and also the north region.  It also plans to augment existing capacity for the healthcare business.