Dabur’s Q1 profit up 11.8%, to invest Rs 500 crore in 2016-17

New Delhi, July 27 (IANS) Dabur India on Wednesday reported an 11.8 per cent increase in its consolidated net profit to Rs 292.8 crore in the quarter ended June 30, 2016. The company will invest Rs 500 crore in the current fiscal for setting up new production units along with expansion of existing plants.

The company had posted a consolidated net profit of Rs 261.8 crore in the April-June quarter last year.

"The company is focusing on aggressive expansion of its manufacturing capability and will be investing Rs 500 crore within the 2016-17 fiscal to establish new production units as also expand its existing plants in India and abroad," a company statement said.

Net sales for the first quarter of 2016-17 stood at Rs 1,923.9 crore, up from Rs 1,901.7 crore a year earlier.

"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 like the Middle East and Africa. Despite these challenging conditions, we remain on a steady course and have reported profitable growth," said the company's Chief Executive Officer Sunil Duggal.

"Our domestic FMCG business ended Q1 (April-June) of 2016-17 with an underlying volume growth of 4.1 percent even in this tough environment," he said.

The oral care business posted a near 12 percent growth during the quarter while its foods business ended the quarter with an over 4 percent growth. Home Care business reported an over 2 percent growth. Its international business reported a near 6 percent growth, led by Nepal, Egypt and Turkey.