Dabur India Ltd - Update for Q4 FY2023-24

This update provides an overall summary of the performance and demand trends witnessed during the quarter ended March 31, 2024 (Q4 FY24). This will be followed by detailed financial results and earnings presentation once the Board of Directors of the Company approves the consolidated and standalone financial results for the quarter ended March 31, 2024.

Demand trends remained sluggish during the quarter. Rural growth picked up fuelled by price roll backs in staples which led to the gap between rural and urban narrowing. With a positive outlook for the rabi crop harvest and monsoon forecast to be normal we expect consumption to pickup in the coming months.

Dabur's consolidated revenue is expected to register mid-single digit growth during Q4 FY24. The inorganic revenue growth which was to the extent of around 2.3%tillYTD'Dec2023 on account of Badshah acquisition is now factored in the base.

In India business, HPC segment is expected to grow in high-single digits. Healthcare and F&B segments are expected to register low single digit growth. F&B had a high base of last year and l-1ealthcare portfolio was impacted due to delayed winter. Badshah Masala continued to perform well and is expected to post strong volume led growth in high teens. We continued to gain market share across our categories driven by strong execution in market.

International Business is expected to register double-digit growth in constant currency terms, led by good momentum in MENA region, Egypt & Turkey. However due to impact of currency' depreciation in Turkey and Egypt the translated revenue in INR terms will show growth in mid single digits.

Gross margins are likely to continue to witness expansion on account of deflation in input cost and cost- saving initiatives. In line with the strategy to invest behind our brands we will see higher A&P spends. The operating profit is expected to grow slightly ahead of the revenue and post an improvement in Y-o-Y operating margins.

While the past year was challenging in terms of consumer demand, we expect improvement in consumption going forward as macro-economic indicators continue to be robust. Our focus on investing behind our brands, distribution expansion, manufacturing capabilities and organization will keep us in good stead to capture the opportunities in the market place.

Shares of Dabur India Limited was last trading in BSE at Rs. 505.95 as compared to the previous close of Rs. 531.30. The total number of shares traded during the day was 344456 in over 13658 trades.

The stock hit an intraday high of Rs. 532.65 and intraday low of 502.55. The net turnover during the day was Rs. 176029014.00.

Source : Equity Bulls

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DaburIndia INE016A01026 Q4FY2024 Update