Consumer items maker Dabur India flagged sluggish demand in the March quarter and indicated slowing income development from prior quarters on Thursday, sending shares to a close to six-month low.
Dabur stated it expects mid-single digit share income development in the quarter ended March 31, in comparison with a 7% rise in the December-quarter and seven.3% soar in the quarter earlier than that.
Its shares fell 4.5% after the information, and have been on observe for his or her worst day since May 2023. The inventory was additionally the highest drag on the FMCG index, which slipped 0.2%.
Rural demand picked in the quarter, helped by decrease costs of staples, narrowing the hole between rural and concrete areas, the corporate stated.
Dabur additionally forecast double-digit share development in fixed forex phrases for its worldwide enterprise, led by the Middle East and North Africa (MENA) area, Egypt, and Turkey. Overseas markets account for a couple of quarter of its income.
The agency added that development in working revenue for the quarter is anticipated to barely outpace income, ensuing in an improved year-on-year working margins.
Dabur, which is anticipated to report its fourth quarter earnings in May, is the primary amongst Indian client items corporations to launch its quarterly replace.
Marico, Godrej Consumer Products, and Adani Wilmar are anticipated to report quarterly updates later this week.
Additionally, Dabur stated its healthcare enterprise is anticipated to indicate a smaller development in comparison with house and private care, as a delayed winter affected demand.
Dabur, which sells well being dietary supplements and chilly & cough aid, didn’t point out which merchandise’ gross sales have been affected.
