Dabur India Ltd - Update for Quarter ended March 31, 2023 - Q4 FY23

This update provides an overall summary of the performance and demand trends witnessed during the quarter ended March 31, 2023 (Q4 FY23). 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. 2023.

The demand trajectory across both urban and rural markets in India has shown a slight improvement sequentially, although it falls short of a full recovery. While urban markets have returned to positive volume growth, rural markets still remain muted. Despite near term consumption pressure, there are some green shoots which are emerging such as moderating inflation, improving consumer confidence and increase in Government spending.

In such a scenario, Dabur's India business is expected to report mid-single digit revenue growth. F&B business continues to trend at robust levels and will report strong double-digit growth. Despite navigating high base of last year due to Omicron, Healthcare portfolio is expected to be in the positive growth trajectory. HPC will report low single digit revenue growth on account of slowdown in the personal care categories. Our brands continued to record gain in market shares in most of the segments.

International business is expected to register high single-digit growth in constant currency. However, due to currency headwinds in Egypt and Turkey, the reported growth in INR will be impacted. While there are short term pressures, we are restructuring our distribution network in key markets and increasing investments behind our brands which will benefit us in the long term.

The Quarter also marks the consolidation of Badshah Masala (effective 2nd January 2023). The business is in the process of being integrated and is tracking as per expectations.

Overall, Dabur's consolidated revenue is expected to report mid-single digit growth during the quarter.

Inflation continued to cool off for most of our commodities. India gross margins are expected to show an improvement, but Consolidated gross margin will be impacted mainly due to currency headwinds in International Business. We have also strategically increased our spends behind our brands, leading to short term pressure on the operating margin, which is expected to be lower by around 200-250 bps as compared to Q4 FY22.

While the environment has been challenging, the fundamentals of the business continue to be resilient. We will continue to invest strongly behind Power Brands, Innovation, Distribution expansion and a robust back end which will enable us to increase our market shares and achieve profitable and sustainable growth.

Shares of Dabur India Limited was last trading in BSE at Rs. 547.95 as compared to the previous close of Rs. 547.30. The total number of shares traded during the day was 14355 in over 1185 trades.

The stock hit an intraday high of Rs. 554.50 and intraday low of 541.85. The net turnover during the day was Rs. 7863131.00.

Source : Equity Bulls

Keywords

DaburIndia INE016A01026 QuarterlyUpdate Q4FY23