Share price of one of India’s leading FMCG companies fell by nearly 5.4 percent on BSE to Rs. 502.55 in the trading session of Thursday, compared to its previous close of Rs. 531.3, after the company announced a drop in its monthly business updates.
With a market capitalisation of Rs. 89,736.06 crores, the shares of Dabur India Limited closed in the red at Rs. 507.25, down by 4.47 percent.
According to recent regulatory filings with the stock exchanges, Dabur India anticipates consolidated revenue to rise in mid-single digits during Q4 FY24, as the demand trends remained sluggish during the quarter.
The Badshah Masala acquisition resulted in inorganic revenue growth of about 2.3 percent till YTD December 2023, which is now factored in the base.
It was also mentioned that Badshah Masala continued to perform well and is likely to post strong volume-led growth in the high teens.
However, the business expects consumption to increase in the following months due to a favourable outlook for the Rabi crop harvest and normal monsoon conditions.
The company’s healthcare and food and beverage segments are predicted to increase by low single-digits.
International Business is expected to rise by double-digit in constant currency terms, driven by strong momentum in the MENA region, Egypt and Turkey.
However, due to the impact of currency depreciation in Turkey and Egypt, the translated revenue in INR (Indian Rupee) terms will climb by the mid-single digits.
Gross margins are expected to rise further as input costs fall and cost-cutting measures are implemented. The company’s operational profit is expected to rise slightly faster than its revenue, with operating margins improving year on year.
While consumer demand has been challenging over the last year, the company anticipates consumption to recover in the future as macroeconomic indicators remain strong.
In terms of financials, the company’s revenue from operations grew by nearly 7 percent YoY from Rs. 3,043 crore in Q3 FY22-23 to Rs. 3,255 crore in Q3 FY23-24, accompanied by an increase in the net profit by 6.07 percent from Rs. 477 crore to Rs. 506 crore during the same period.
The company has delivered negative returns of about 7.4 percent in the last one year and nearly 7.9 percent in the last six months. So far in 2024, it has given negative returns of around 9.01 percent.
Dabur India Limited is one of India’s leading FMCG Companies and is one of the world’s largest Ayurvedic and Natural Health Care Company.
The company operates in various consumer product categories including hair care, oral care, healthcare, skin care, home and personal care foods.
Written by Shivani Singh
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