Dabur India posted a consolidated net profit of Rs.292.8 crore for the quarter ended June 30, up 11.8 per cent from Rs. 261.8 crore in the corresponding quarter previous fiscal.
However, due to strong macroeconomic headwinds, the company’s consolidated net sales grew by a mere 1.2 per cent to Rs. 1923.9 crore. The company said that business environment remained challenging in the first quarter of this fiscal with demand slowing down across key consumer product categories in the country. Meanwhile, Dabur plans to make investments of about Rs. 500 crore in this fiscal to set up new production units as well as expanding existing plants in India and abroad. In a statement, Dabur India CEO Sunil Duggal said, “In the first quarter of 2016-17, we had to deal with a tough economic environment characterised by demand slowdown, intensifying competitive pressures and deteriorating geopolitical situation in select geographies such as West Asia and Africa.” He said despite the challenging conditions the company reported profitable growth in the quarter.