FMCG major and Ayurvedic products maker Dabur on Tuesday said it has received a Goods and Service Tax (GST) demand notice of Rs 320.60 crore, along with interest and penalty.
In a regulatory filing, Dabur India said that there would be no impact on financial, operation or other activities of the company due to this intimation of tax being payable. "The impact will be limited to the extent of final tax liability as may be ascertained along with interest and penalty, if any," it said.
The company will challenge the same based on strong merits by filing its reply before the relevant authorities, Dabur India said in a regulatory filing.
“The Company has received intimation of tax ascertained as being payable under Section 74(5) of CGST Act, 2017, wherein GST short paid / not paid amounting to Rs 320.60 crore has been advised to be paid by the Company along with the amount of applicable interest and penalty… failing which show cause notice will be issued,” Dabur informed.
Last week, Dabur India said that its consolidated revenue is likely to garner mid to high single-digit growth during the second quarter of FY24. It added that operating profit is expected to grow in line with revenue and is expected to remain steady compared to the same quarter last year. This comes on the back of “gradual recovery” with “slightly deficient monsoon”.
“While FMCG consumption is showing year-on-year improvement, however, the recovery has been gradual. This quarter (Q2) witnessed a mild summer and slightly deficient monsoon. The festive season is later than normal this year due to which offtake related to festivals is delayed and will carry forward to next quarter,” the FMCG major said in a BSE filing.
In its India business, Healthcare and HPC segments are expected to grow in high single-digit. On account of a mild summer and changes in festive season, the company anticipates the food and beverage (F&B) business to remain slightly below last year revenue. Badshah Masala continued to perform well and is expected to post growth in high teens, it said. Dabur's international business is poised for a strong performance, with double-digit growth in constant currency led by Middle East, Egypt and Turkey. "While the FMCG consumption is showing year-on-year improvement, however the recovery has been gradual. This quarter witnessed a mild summer and a slightly deficient monsoon. Festive season is later than normal this year due to which offtake related to festivals is delayed and will carry forward to next quarter," the company said in a statement.
The company will release its second quarter (Q2FY24) results on November 2, 2023. In Q1 FY24, teh FMCG giant reported a consolidated net profit of Rs 456.61 crore, registering a growth of 3.52 per cent YoY.
Shares of Dabur India closed at Rs 540.05, up by 0.55 per cent.