Dabur third quarter profit rises; sees cost push on some products

Personal care products maker Dabur India Ltd reported a 28% rise in quarterly consolidated profit on a rise in sales and said it will continue to resist price hikes despite a rise in some input costs.                                           

The firm on Wednesday reported a consolidated net profit of Rs1.37 billion in October-December compared with Rs1.07 billion a year ago. Total income grew to Rs9.3 billion from 7.8 billion.                                           

"Growth has come from all the 3 business verticals- consumer care, consumer health and overseas. We have seen growth both in terms of margins and revenues," chief executive Sunil Duggal told Reuters.                                           

Its consumer care vertical which contributes the major chunk of its business and makes hair oils, shampoos, toothpaste and food products, grew nearly 13% to Rs6.02 billion on buoyant demand for its range of offerings, it said.                                           

Duggal said the firm has seen high cost pressures on certain categories such as sugar-related products.                                           

"There is no pressure to go up on prices barring few products where the input cost pressure has been extremely high like honey and some sugar-related products," he said.                                           

"I don't see any significant hikes in terms of prices. We will try to avoid it, but if necessary we will take it up".                                           

He also said the firm would set up a new manufacturing plant in Egypt by the first quarter of the next fiscal.                                           

"It will be one of our largest plants overseas and will make wide assortment of products including toiletries, healthcare and skincare not just for the Egyptian market, but also the North African market," he said.                                           

The firm is also scouting for acquisitions in the UAE and Africa, but Duggal said Dabur has not zeroed in on any buys yet.                                           

Shares of Dabur India ended 1.65% down at Rs155.2 in a weak Mumbai market.