NEW DELHI: On account of sluggish demand trends, FMCG major Dabur is expecting a mid-single digit growth in its consolidated revenues in the recently concluded March quarter. The company stated that the past year was “challenging” for consumer demand but it expects improvement going ahead.
“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 India Ltd said in a regulatory filing on Thursday.
Dabur added that the inorganic revenue growth which was to the extent of around 2.3% till YTD ‘Dec 2023 on account of Badshah acquisition is now factored in the base. Gross margins are likely to continue to witness expansion on account of deflation in input cost and cost- saving initiatives, said the company. Following this disclosure, shares of Dabur hit a 52-week low Rs 502.30 intraday on Thursday and closed 4.7% lower at Rs 507.25 a piece.