Last Updated: April 04, 2024, 15:40 IST
Dabur India’s shares fell over 4 per cent after the company announced a mid-single-digit revenue growth in the January-to-March quarter. The stock was trading 4.5 per cent lower at Rs 507 at 1:38pm on the National Stock Exchange (NSE).
FMCG major Dabur Ltd. expects to report consolidated revenue growth in the mid-single-digit 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 2.3% inorganic revenue growth till December 2023 on account of the Badshah Masala acquisition.
However, it expects consumption to pick up in the coming months owing to a positive outlook for the Rabi crop harvest and expectations of a normal monsoon.
Dabur’s health and personal care segment in India may grow in high-single digits during the quarter, while the F&B segment is expected to register low-single-digit growth. The company also said that it continues 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 high teens,” the company said.
Good momentum in the Middle East and North Africa (MENA) region, Egypt and Turkey is likely to contribute to a double-digit constant currency growth for Dabur’s international business. However, the translated revenue in rupee terms will show a mid-single-digit growth due to the currency depreciation in Turkey and Egypt.
The gross margin for Dabur is likely to continue expanding due to input cost deflation and cost-saving initiatives. It does expect to see higher Ad spends as the company continues to invest in the brand. “The operating profit is expected to grow slightly ahead of revenue and post an improvement in year-on-year operating margins,” the company said.
The stock is down 6 per cent over the last 12 months.