Brands
FY-2015: Dabur’s Real becomes Rs 1000 crore brand; PAT crosses Rs 1000 crore
BENGALURU: Dabur India Limited’s brand ‘Real’ fruit juice crossed sales of Rs 1000 crore in FY-2015 in India, Nepal and a few other markets, the company revealed in its investor presentation.
Dabur spent 12.5 per cent more towards advertising and publicity expenses (ASP) in FY-2015 at Rs 1124.38 crore (14.4 per cent of Total Income from Operations or TIO) as compared to the Rs 999.67 crore (14.1 per cent of IO) in FY-2014. Also, for the first time, the company has crossed the Rs 1000 crore mark by clocking profit after tax (PAT) of Rs 1068.47 crore (13.7 per cent of TIO) in FY-2015. In FY-2014, Dabur had reported PAT of Rs 916.45 crore (13 per cent of TIO).
Note: 100,00,000 = 100 lakh = 10 million = 1 crore
Dabur’s products
Dabur’s products include health supplements like Chyawanprash, Ratnaprash, Honey, Glucose; digestives like Hamjola – Hajmola Chuzkara and Natkhat Amrud, Pudin hara fizz; OTC and ethicals such as Lal Tail, Honitus Syrup; haircare products like Vatika, Vatika Brave and Beautiful digital, Anmol Jasmine marks; toothpaste brands like Dabur Red, Babool and Meswak; skincare products like Fem natural fairness, Gold Bleach, Gulabari; homecare brands such as Odomos, Odonil and Sanifresh; food brands such as Real and Real Active.
“The gradual improvement in the consumption environment has helped our business perform well on all operating parameters. Our robust business model and our ability to efficiently manage the external challenges have helped us report a strong and consistent performance even in the face of intensifying competitive pressures. Our India FMCG business ended the fourth quarter with a 12 per cent growth, led by 8.1 per cent volume growth. Our EBIDTA margin saw a 17 per cent growth during the quarter,” Dabur India CEO Sunil Duggal said.
“Going forward too, our focus will be on pursuing an aggressive and profitable growth strategy. We will continue to invest behind our brands and on market expansion programmes while stepping up on innovation with a series of new product launches in the coming quarter,” Duggal added.
Trends
The company’s ASP in the quarter ended 31 March, 2015 (Q4-2015, current quarter) at Rs 265.39 crore (13.6 per cent of TIO) was 16.2 per cent more than the Rs 228.38 crore (12.9 per cent of TIO) in the corresponding quarter of last year, but was 16.9 per cent lower than the Rs 319.38 crore (15.362 per cent of TIO) in the immediate trailing quarter. Over the ten quarter period starting Q3-2014, Dabur’s ASP in absolute rupees and ASP in terms of percentage of TIO both show a linear increasing trend.
Please refer to Fig 1 below. It may be noted that when calculated, the brown trend line for ASP in terms of percentage of TIO actually shows a figure of 14.25 per cent of TIO (Rs 277.838 crore), and the blue trend line for ASP in absolute rupees shows a figure of Rs 289.902 crores (14.9 per cent of TIO) for Q4-2015.
During the ten quarter period under consideration, Dabur‘s ASP was highest in absolute rupees in immediate trailing quarter at Rs 319.38 (15.362 per cent), while and in terms of percentage of TIO, it was highest in Q1-2014 at 15.385 per cent (Rs 254.22 crore).
Dabur TIO in FY-2015 at Rs 7827.20 crore was 10.6 per cent more than the Rs 7075.31 crore in FY-2014. In Q4-2015, the company reported TIO of Rs 1949.74 crore, which was 9.9 per cent more than the Rs 1774.41 crore in Q4-2014, but 6.2 per cent lower than the Rs 2079.02 crore in Q3-2015. The company’s TIO shows a linear increasing trend during the ten quarter period under consideration in this report.
Dabur PAT for Q4-2015 at Rs 284.86 crore (14.6 per cent of TIO) was 21.1 per cent more than the Rs 235.29 crore (13.3 per cent of TIO) and 0.7 per cent more than the Rs 282.78 crore (13.6 per cent of TIO) in Q4-2014. PAT in abslute rupees as well as in terms of percentage of TIO show linear increasing trends.
The company in its earnings release says that the Foods category for Dabur – riding on strong demand for its packaged juices – posted a near 20 per cent growth during the fourth quarter of 2014-15, while the Skin Care business ended with a near 17 per cent growth. The Toothpaste business, led by strong demand for Dabur Red Paste and Meswak, reported an over 14 per cent growth. The Health Supplements Business grew by 13 per cent, while the Home Care category grew by over 12 per cent.
Brands
Reserve Bank of India cancels Paytm Payments Bank licence
Central bank cites compliance failures; curbs tighten as wind-up looms
MUMBAI: India’s banking watchdog delivered its sharpest blow yet to Paytm Payments Bank, cancelling its licence and effectively ending its ability to operate as a bank under the law.
The Reserve Bank of India said the entity can no longer conduct banking business under the Banking Regulation Act, citing concerns that its affairs were not being run in the interest of depositors or the public and that it had failed to meet licence conditions.
The move escalates a crackdown that has been building for months. The bank had already been barred from onboarding new customers since March 11, 2022, and later faced restrictions on deposits, credit and wallet top-ups. In January 2024, the central bank ordered it to stop accepting fresh deposits, pointing to persistent non-compliance, including lapses in customer due diligence, use of funds and technology systems.
Operationally, the bank is now on a tight leash. It may process withdrawals of existing deposits and facilitate loan referrals through banking correspondents, but it cannot take fresh deposits.
The central bank said it would apply to the high court to wind up the bank.
Paytm sought to ringfence the fallout. In a regulatory filing, it said the licence cancellation applies to Paytm Payments Bank Limited, a separate entity, and should not be attributed to One 97 Communications. It added that there is no exposure or material business arrangement with the bank and that it operates independently, without Paytm’s board or management involvement.
“As informed earlier, Paytm (One 97 Communications Limited) and its services, which have been operating without interruption, will continue to operate uninterrupted. These include the Paytm app, Paytm UPI, Paytm Gold and all other services offered by its subsidiaries and associated companies,” the company said.
The distinction may reassure users of the app ecosystem, but the regulator’s verdict is unequivocal. After years of warnings, caps and curbs, the payments bank experiment at Paytm is being shut down—decisively, and with little room left to manoeuvre.
