Dabur India Q3 net meets estimates as intl business aids

Personal care and food products maker Dabur India met market expectations in October-December effects of currency fluctuations were offset by growth in its international business.

Dabur's international business, which contributes about a third to the company's sales, grew 38 percent, excluding the recent acquisitions. The growth was led by the Nigerian business which rose 33 percent.

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Earlier, the company said its consolidated net profit was 1.73 billion rupees in October-December, up 12 percent on year. Sales stood at 14.5 billion rupees, up 34 percent.

Analysts expected a profit of 1.74 billion rupees, according to ThomsonReuters I/B/E/S.

Financial results for the quarter are not comparable with the corresponding period due to the acquisitions of Namaste Laboratories LLC and Hair Rejuvenation and Revitalisation Nigeria Ltd last year.

"There was some impact of adverse foreign currency movements on the third quarter net profit which may be recovered if rupee continues to appreciate in the fourth quarter," the company said in a statement.

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Dabur India makes health and hair care products under the brand 'Dabur' and 'Vatika' and fruit-beverages under 'Real'.

Its standalone profit, representing the Indian business, fell 20 percent to 1.02 billion rupees.

"Despite the inflationary pressures and macro-economic challenges, we have managed our business dynamically through a combination of judicious price increases and greater focus on cost efficiencies," Chief Executive Sunil Duggal said in a statement.

During the quarter, Dabur's EBITDA (earnings before interest, tax, depreciation, amortisation) margin declined to 16.7 percent from 20.1 percent in the same period last year.

Indian consumer goods makers are facing a difficult choice between raising prices and retaining market share as high inflation in several categories compresses their margins and a price increase hurts volume growth.

India's wholesale price index was almost in line with market expectations at 7.47 percent in December from a year earlier.

Shares of the company traded up 1.73 percent at 94.1 rupees in a firm Mumbai market.