Dabur India has recorded an increase of 8.5% in its net profit for the three month period ended March 31, 2011, after selective price rises, cost-cutting measures and volume development assisted it defeat a big jump in raw material prices.

The manufacturer of Vatika shampoo and Real juice recorded a Rs 147 crore net profit during the fourth quarter.

The company's sales grew by 31% to Rs 1,117.22 crore, owing to overseas acquirements like US personal care manufacturer Namaste Labs and Turkey's Hobi Kozmetik.

Dabur CEO Sunil Duggal stated, "Despite pressures from the turmoil in Egypt, our overseas acquisitions have been key in driving business this quarter."

During the three month period, the company's raw material rates surged 57.5% to Rs 501.33 crore.

Duggal said he anticipated pressure on margins to relieve after two quarters, but added that the company will enhance prices of select items, if needed.

Analysts stated that a sharp growth in the rates of key raw materials, like palm oil, copra and sugar, will have an effect on the fourth quarter recital of consumer goods firms,

In addition, Vatika and Real, the company makes Fem skincare products, Hajmola digestive candies and Dabur Chyawanprash, among others.

The board of the company also declared a final dividend of 65%.