Dabur shares drop after company says demand trends remain sluggish

The healthcare and food and beverage categories are predicted to rise in the low single digits. 

Dabur India’s shares slid more than 4% after the business reported mid-single-digit sales growth in the January-March quarter.

At 1:38, the stock was trading 4.5 percent down at Rs 507 on the National Stock Exchange (NSE).

According to the company’s Q4FY24 results update, the India business, as well as the home and personal care division, are forecast to expand in the high single digits.

Healthcare and food and beverage categories are predicted to expand by low single digits. While international business is forecast to increase by double digits in constant currency terms, powered by strong momentum in the Middle East and North Africa, Egypt, and Turkey,. According to the corporation, gross margins will likely continue to rise as input costs fall and cost-cutting strategies are implemented.

“Demand patterns were slow during the quarter, although rural growth picked up on price cuts in basics, resulting in a decreasing gap between rural and urban areas. “With a positive outlook for the rabi crop harvest and a normal monsoon, we expect consumption to increase in the coming months,” the business stated.

Dabur India shares have fallen 7% in the last six months and 6.14% in the last year.

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