Indian FMCG giant, Ayurveda major Dabur India reported a 22% YoY fall in net profits for the period ended in March 2022. It’s profits contracted from Rs 377.29 crores as at last year to Rs 294.34 crores this quarter.
Parent to major brands like Real, Dabur Pudin Hara, Dabur Chyawanprash and several others, the company reported a 7.5% growth in revenues and 2% increment in operating profits. However, the company’s rising input costs have affected consumer purchases and resulted in operating profits significantly lower than estimates.
The company’s operating margin stood at 18% for the quarter, lower than the 18.9% margin last quarter on account of rising inflation. On that note, the company’s cost of raw materials rose 21.6%.
The company had an exceptional loss of Rs 85 crores during the quarter due to the impairment of goodwill of the company’s wholly-owned subsidiary, Hobi Kozmetic, on account of the steep devaluation of the Turkish currency.
The stock has declined 11.07% as the share has been falling for the past 6 trading sessions. It currently trades around Rs 508.90 per share.
Highlight by Aman Agarwal.