Dabur Ltd on Wednesday reported an 17.5% year-on-year fall in its consolidated net profit (attributable to owners of the holding co) for the fiscal's second quarter ended September (Q2FY25) to ₹425 crore. The company had reported a profit of ₹515.05 crore in the year-ago period. Sequentially, the consolidated net profit was down 15.02%.
Dabur's consolidated revenue from operations stood at ₹3,028.59 crores during the quarter ended September from ₹3,203.84 crore in Q2FY24, a year-on-year fall of 5.5%.
In an exchange filing, the company reported that despite a tough demand landscape characterised by significant food inflation and a subsequent pressure on urban demand, Dabur maintained strong consumer engagement with its major brands, finishing the second quarter of 2024-25 with a consolidated revenue of ₹3,029 Crore.
The FMCG-major's EBITDA was down by 9.4% compared to the same quarter last year, totalling ₹704.1 crore.
Dabur India’s Chief Executive Officer, Mohit Mathotra, said in an exchange filing that the company’s business fundamentals are robust, with secondary sales for the second quarter increasing by more than 2%, and a 5-year revenue CAGR for the India operations exceeding 8%.
“Dabur's lnternationaI Business reported strong constant currency growth of 13% during the second quarter. The Egypt business reported a near 73% CC growth, while MENA business grew by 10% and Sub-Saharan Africa grew by 26%. The Badshah business also reported a 15% growth in Q2,” added Malhotra.
In a filing with the exchange, the company announced that its board of directors, during a meeting, approved an interim dividend of ₹2.75 per equity share with a face value of Re. 1/- each (equating to 275%) for the financial year 2024-25. The record date of November 8, 2024 has been set.
Dabur India announced its acquisition of Sesa Care Private Limited, a prominent Ayurvedic hair care brand, for an estimated price of ₹315-325 crore, aiming to enhance its footprint in the ₹900-crore ayurvedic hair oil sector.
Dabur will purchase 51% of Sesa's shares for ₹12.59 crore and will also provide a corporate guarantee for Sesa's existing debt. The merger is anticipated to be finalised in 15-18 months, pending regulatory approvals.
On Wednesday, Dabur share price closed 2.07% higher at ₹546.95 apiece on BSE. According to Rajesh Bhosale, Equity Technical and Derivative Analyst at Angel One, in the last couple of months, Dabur share price has seen sharp sell-off from its highs of around 670, the trend remains weak but considering the oversold conditions we have seen some respite in this week.
The immediate support is around ₹530 which if broken will resumes downside towards ₹510 on the flip side, the stock has multiple over head resistance at higher levels with ₹560 and ₹570 as key moving average levels. Any bounce towards it can be used to exit positions as undertone remains weak for this counter.
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