Dabur India’s shares took a hit on Thursday, dropping over 4% following the company’s announcement of mid-single digit revenue growth for the March quarter.
What Happened: The company said it anticipates high-single digit growth in its India business and home and personal care segment for Q4FY24.
However, the healthcare and food and beverage segments are expected to see low single-digit growth. On the international front, the business is likely to experience double-digit growth in constant currency terms, driven by strong momentum in regions like the Middle East, North Africa, Egypt and Turkey.
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A Few Good Things: The company’s gross margins are forecasted to expand further due to deflation in input costs and cost-saving measures.
During the quarter, demand trends remained sluggish, with rural growth picking up due to price rollbacks in staples, narrowing the gap between rural and urban areas. With a positive outlook for the rabi crop harvest and normal monsoon forecasts, the company expects consumption to increase in the coming months.
Price Action: Dabur India’s share price was down 4.43% at ₹507.50 in afternoon trade on Thursday, hitting its lowest in 11 months.
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