Dabur India Shares Trade Lower On Expectations Of Mid-To-High Single Digit Revenue Growth In Second Quarter

Dabur India shares remained in focus today after the company provided an overall summary of the performance and demand trends witnessed during the quarter ended September 30, 2023 (Q2 FY24).

In an exchange filing, the company said that Dabur's consolidated revenue is expected to register mid to high single-digit growth during Q2.

The announcement said, "FMCG consumption is showing y-o-y improvement, however, the recovery has been gradual. This quarter witnessed a mild summer and a slightly deficient monsoon. The festive season is later than normal this year due to which offtake related to festivals is delayed and will carry forward to next quarter."

According to the company, in India business, Healthcare, and HPC segments are expected to grow in the high single-digit.

"On account of a mild summer and change in the festive season, we anticipate the F&B business to remain slightly below last year revenue. Badshah Masala continued to perform well and is expected to post growth in high teens," it added.

Noticeably, Dabur's Consol business is expected to see higher gross margin expansion than that seen in Q1 FY24, aided by moderating inflation and our cost-saving initiatives.

The FMCG giant expects a recovery of consumption in both urban and rural markets in India due to improving macro indicators, an increase in government expenditure, and positive consumer sentiment.

Dabur shares were seen trading 0.86% lower at 546.00 per share at 2:48 pm IST today. The stock's year-to-date (YTD) performance is down 15%, while its last one year returns are up just 1.30%.