Dabur sees early signs of rural recovery, enters talcum powder market
Dabur expects mid-single digit growth in Q4 consolidated revenues For Dabur, rural markets grew 400 basis points (bps) ahead of urban markets in the March quarter. On Thursday, the company reported a 16.2% jump in quarterly net profit to ₹350 crore, up from ₹301 crore a year earlier. Revenue in the three months through March stood at ₹2,815 crore, up 5.1% from a year earlier.
Dabur India FMCG business posted a volume growth of 4.2% for the quarter. Also Read: J&J, Kenvue Told to Pay $45 Million to Baby Powder User’s Family One basis point is one-hundredth of a percentage point. Dabur’s home and personal care business grew 8.7% year-on-year in the March quarter, while the food and beverages was flat.
Healthcare business was down 1.5% in the same period. Malhotra said government spending on infrastructure and projections of a normal monsoon could hold rural growth in strong stead going forward. "In three years’ time, rural has just come back in the last 2-3 months.
If these numbers are anything to go by, I think rural recovery should continue because it was such a long hiatus of rural lagging urban…organized players generally get better dividends when this happens, because we have better infrastructure investments in place," he added. The company also announced its entry into several new categories, including expanding its chyawanprash brand into the powder and gummy format. Dabur is also set to enter the talcum powder category this summer, with its Dabur Cool King brand competing with the likes of Emami Ltd.
The company is also set to foray into breakfast cereals under the Dabur Honey brand. Meanwhile, Malhotra said the company will chase greater volume growth this fiscal. The company clocked a 5.5% volume growth in its
. Read more on livemint.com
