Dabur Share Price in Focus; Revenue Declines by 5.5% YoY in Q2 FY 2025 Financial Results

On Wednesday, Dabur India Limited released its financial results for the second quarter of FY 2024-25. On October 31, 2024, Dabur share price opened at ₹538.05, down from its previous close of ₹546.65. At 10:06 AM, the share price of Dabur India was trading at ₹542.00, down by 0.85%.

Q2 FY 2025 Financial Performance

The company reported a consolidated net profit of ₹425 crore for the quarter, which declined by 17.5% YoY. The revenue generated was ₹3,029 crore, down by 5.5% YoY. 

The company stated that despite facing a difficult demand environment characterised by high food inflation and a subsequent squeeze in urban demand, Dabur successfully maintained consumer engagement across its key brands. 

Interim Dividend Declared

In line with its shareholder-friendly approach, the Board of Directors declared an interim dividend of 275% for 2024-25. Mr Mohit Burman, Chairman of Dabur India Ltd announced the interim dividend of ₹2.75 per share, which totals a payout of ₹487.39 crore. 

Strategic Merger with Sesa Care Private Limited

In a significant strategic move, Dabur India Ltd announced its intention to merge with Sesa Care Private Limited, subject to regulatory approvals. As part of this transaction, Dabur will acquire 51% of the total paid-up cumulative redeemable preference shares (CRPS) of Sesa from True North, a private equity fund, for ₹12.5 crore at face value. The enterprise value of the merger is estimated to be between ₹315 crore and ₹325 crore, which includes debt of ₹289 crore, secured by a corporate guarantee from Dabur.

Sesa is recognised as a leading brand in the Ayurvedic hair care market, boasting strong brand equity. The announcement marks a pivotal step in Dabur’s strategy to expand its product offerings in the Ayurvedic sector. The merger process is anticipated to proceed through the appropriate regulatory authorities in the coming months, with the share swap for equity shares and remaining CRPS in Sesa to be determined at the time of filing the merger scheme, based on valuation reports.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.