Dabur Q2 Results: PAT drops 17% YoY to Rs 425 crore; revenue falls 5%

Dabur India on Wednesday reported a 17% decline in its consolidated net profit, totaling Rs 425 crore for the quarter ended September 2024, down from Rs 515 crore in the same quarter last year.

Revenue from operations fell 5% year-on-year to Rs 3,029 crore in the July-September 2024 period, compared with Rs 3,204 crore in the corresponding period of the previous year.

The company's board has approved an interim dividend of Rs 2.75 per share for the financial year 2024-25 and has set November 8 as the record date.


EBITDA for the reporting quarter stood at Rs 553 crore, reflecting a drop of 16% year-on-year (YoY).

Margins for the same period were 18.2%. Dabur noted that a marked shift in consumer buying patterns towards emerging channels like quick commerce—driven by convenience—has led to significant growth in these channels, while putting pressure on General Trade.

To address the changing dynamics in the marketplace and support the distributor partners in tiding over the challenges, the company took a proactive decision to rationalize inventory in the General Trade, which resulted in a temporary dip in sates during the quarter.

"However, the move has resulted in improving the long-term health and hygiene of our business, paving the way for healthy growth going forward," Dabur India's CEO Mohit Malhotra said.

Malhotra exuded confidence that despite the one-off adjustment, Dabur's business fundamentals remain strong with secondary sales for the second quarter growing at over 2% and the 5-year Revenue CAGR for the India business at over 8%.

The company is expecting a recovery in consumer demand in the coming quarters, both in urban and rural markets as it focuses on strengthening competitive edge in the marketplace by investing in scaling up rural footprint.

Dabur's International business reported strong constant currency growth of 13% during the second quarter. The Egypt business reported a near 73% CC growth, while MENA rose 10%. The Badshah business also reported a 15% growth in Q2.

On Wednesday, Dabur stock closed nearly 2% higher at Rs 546 on NSE.