Achi news desk-
Last Updated:
Shares of Dabur India fell over 4 percent after the company posted mid-single digit revenue growth in the January-March quarter. The stock was trading 4.5 percent lower at Rs 507 at 1:38 pm on the National Stock Exchange (NSE).
FMCG major Dabur Ltd expects to report consolidated revenue growth in the mid-digits during the March quarter as demand trends continued to remain sluggish during the quarter, it said in an exchange filing. The revenue growth projection also factors in the inorganic revenue growth of 2.3% until December 2023 due to the acquisition of Badshah Masala.
However, he expects consumption to increase in the coming months due to positive outlook for Rabi crop harvest and expectations of normal monsoon.
Dabur’s health and personal care segment in India may grow in high single digits during the quarter, while the C&B segment is expected to register low single digit growth. The company also said it continued to gain market share across categories driven by strong execution. “Badshah Masala continued to perform well and is expected to post strong volume-led growth in the teens,” the company said.
Good momentum in the Middle East and North Africa (MENA) region, Egypt and Turkey is likely to contribute to double-digit constant currency growth for Dabur’s international business. However, the revenue translated in rupee terms will show mid-single digit growth due to the currency devaluation in Turkey and Egypt.
The gross margin for Dabur is likely to continue to expand due to input cost deflation and cost saving initiatives. He expects to see higher Ad spend as the company continues to invest in the brand. “Operating profit is expected to grow slightly ahead of revenue and after a year-over-year improvement in operating profit,” the company said.
The stock has fallen 6 percent over the past 12 months.
