A shopkeeper serves a customer in a local grocery store in the Kalahati market area in Siliguri, West Bengal, India (Photographer: Sanjit Das/Bloomberg)  

Dabur’s Q1 Profit Falls 10%; Volumes Decline 

Dabur India Ltd.’s profit fell in the April to June quarter due to the disruptions related to the introduction of the Goods and Services Tax regime. Margins remained largely unchanged.

Net profit fell 9.93 percent year-on-year to Rs 264.9 crore, partly due to a Rs 14.5 crore provision made for inventory lying with distributors, the fast-moving consumer goods company said in its exchange filing. The consensus estimate of analysts tracked by Bloomberg stood at Rs 278 crore.

Revenue declined 8.3 percent to Rs 1,790 crore, below the Rs 1,856 crore consensus of analysts. Volumes fell 4.4 percent.

Earnings before interest, tax, depreciation, and amortisation fell 11.2 percent to Rs 309 crore. The company slashed advertising spends by 24 percent, which helped keep the EBITDA margins at 17.3 percent compared to 17.8 percent in the year-ago period.

The ratio of raw material costs to total revenue rose to 41.5 percent from 41 percent earlier.

Shares of Dabur rose as much as 1.39 percent to Rs 309.4 after the announcement of the quarterly earnings.