Jan 29 (Reuters) - India's Dabur reported third-quarter profit largely in line with analysts' estimates on Thursday, as the demand boost from the country's consumption tax cuts offset the one-time charge from a labour code revision.
Sales of Dabur's honey and other products such as toothpaste, hair oils, and coconut water grew in the double digit percentage in the quarter, the company said in a business update earlier in the month.
The consumption tax cut implemented last year boosted demand for Dabur and the company expects the effect to continue into the coming quarters, as 60% of its portfolio that was taxed at rates of 12% and 18% are now taxed at 5%.
As demand improves and recent good and services tax cuts offer additional support, Dabur is well‑positioned for the coming quarters, CEO Mohit Malhotra said in a statement.
Consumer demand has been gradually improving in India, multiple consumer firms have said, as a sustained moderation in inflation and the government's income tax cuts increase appetite for spending.
Dabur's consolidated net profit rose 7% to 5.6 billion rupees ($60.87 million) for the quarter ended December 31. Analysts had expected, on average, 5.56 billion rupees, as per LSEG data.
Total revenue grew 6% to 35.59 billion rupees.
The company took a one-time hit of 150.5 million rupees due to the implementation of India's new labour codes, the biggest overhaul of workers' laws in decades.
($1 = 91.9960 Indian rupees)
Reporting by Komal Salecha in Bengaluru; Editing by Janane Venkatraman
Source: Reuters