Dabur India slips as sales impacted by political tension in Nepal

Dabur India fell 2.86% to Rs 270 at 10:39 IST on BSE after the company said that its sales were impacted by the prevailing political tension in Nepal.

The announcement was made after market hours yesterday, 3 December 2015.

Meanwhile, the BSE Sensex was down 161.22 points, or 0.62%, to 25,725.40.

On BSE, so far 55,000 shares were traded in the counter, compared with an average volume of 68,434 shares in the past one quarter.

The stock hit a high of Rs 272.60 and a low of Rs 268.10 so far during the day. The stock hit a record high of Rs 316.50 on 6 August 2015. The stock hit a 52-week low of Rs 217.60 on 17 December 2014.

The stock had outperformed the market over the past one month till 3 December 2015, rising 2.93% compared with 2.65% decline in the Sensex. The scrip had, however, underperformed the market in past one quarter, falling 2.51% as against Sensex's 0.47% rise.

The large-cap company has an equity capital of Rs 175.91 crore. Face value per share is Rs 1.

Dabur India said that there is no improvement in the eco-political situation in Nepal till date as was informed earlier on 19 October 2015 and the India-Nepal border continues to remain closed.

The company said it has lost some part of juice sale in October and November 2015 and estimated juice sale during Q3 December 2015 will be lower by 10-15% from previous year. This is a one-time issue beyond the company's control and will have a near-term impact on Q3 December 2015 performance. However, the company should be able to get back on track in Q4 March 2016, Dabur India said. The company has already ramped up the production of juices in Sri Lanka and Newai, Rajasthan and has also engaged with third parties to cater to demand requirement for the month of December and going forward, Dabur India said. Depending upon the timing of opening of the border, the impact on inventory and other cost will be evaluated/considered, the company added.

On a consolidated basis, net profit of Dabur India rose 18.66% to Rs 341.13 crore on 8.73% rise in net sales to Rs 2092.09 crore in Q2 September 2015 over Q2 September 2014.

Dabur India is a leading consumer goods company in India.

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