BENGALURU (Reuters) -Consumer goods-maker Dabur India reported a rise in first-quarter profit on Thursday as easing inflation propped demand.
The company’s consolidated net profit rose 5.4% year-on-year to 4.64 billion rupees ($56.1 million) in the quarter ended June 30.
India’s annual retail inflation cooled to a more than two-year low in May as food costs eased, driving up discretionary spending.
The company said last month that demand in both urban and rural segments has picked up.
Dabur’s revenue in April-June rose nearly 11% to 31.30 billion rupees, led largely by growth in its consumer care business which includes products such as hair oil and toothpaste.
The company’s consumer care business accounts for more than three-fourths of its revenue.
Rival Marico reported a fall in June-quarter revenue on sluggish rural demand, with profit rising on a drop in input costs.
Top consumer company Hindustan Unilever posted a smaller-than-expected rise in profit.
Other consumer goods companies Nestle India and Colgate-Palmolive (India) posted a jump in profit.
Dabur’s shares pared some of the day’s losses after the results.
($1 = 82.7900 Indian rupees)
(Reporting by Varun Vyas in Bengaluru; Editing by Sohini Goswami)
