Dabur India Q4 net up 16%; beats street estimates

NEW DELHI: Packaged consumer goods maker Dabur India on Monday announced a 16% increase in net profit to Rs 171 crore for the January-March 2011 quarter, ahead of street estimates.

Dabur CEO Sunil Duggal said margin pressures would continue over the next two quarters. He did not rule out price hikes in the next quarter, but said the company would try to restrict the price hikes to 5%.

The maker of Vatika shampoo and Real juices posted net sales rose of Rs 1,363.5 crore, up from 23% from the year-ago period.

Dabur’s net profit for the year ended March 31, 2012 was up 13% to Rs 644.89 crore against Rs 568.5 crore the previous fiscal.

The company said in a statement that despite macro headwinds like rising input costs and business disruptions in certain geographies like Nepal, it had posted strong growth on profits riding on hair-care and oral-care.

The company, which crossed Rs 5,000-crore in sales last fiscal, ended the year with net sales of Rs 5,283 crore, while its foods division crossed Rs 500 crore. “We have managed our business through a combination of price increases and greater focus on cost efficiencies,” Duggal said.

The Board recommended a final dividend of 75%. “Continuing with our payout policy, the board has proposed a final dividend of Re 0.75 per share, aggregating to Rs 151.8 crore,” chairman Anand Burman said.

Its international business grew 27.2% during the 2011-12 fiscal, with Nigeria reporting 34% growth and Egypt growing by 29%, the company said, led mainly shampoos, hair creams and toothpaste.