Dabur India drops on expecting net profit margin to decline 150-175 bps in Q4

Dabur India declined 6.03% to Rs 465.60 after the company projected a mid-single-digit decline in its domestic business, due to delayed and truncated winters as well as slowdown in urban markets.

The FMCG major company expects consolidated revenue to remain flattish during the Q4 FY25. Due to impact of inflation coupled with operating deleverage, the company anticipate Q4 operating profit margin to contract by around 150-175 basis points YoY.

During Q4, rural continues to be resilient and grew ahead of urban markets. In terms of channels, organised trade including Modern trade, E-commerce and Quick commerce maintained their growth momentum, while General trade continued to be under pressure. Overall, FMCG volume trends continued to be subdued during the quarter.

The company said that key international markets, including the MENA region, Egypt, and Bangladesh, are likely to post strong performance, leading to robust double-digit growth in constant currency terms for the International business.

In India, the Foods business comprising 'Hommade' and 'Badshah' continued to perform well and is expected to post double-digit growth.

Dabur India is among the top four FMCG companies in India. It has business interests in healthcare, personal care and food products. The company offers products in over 100 countries across the globe, covering health and personal care segments across the herbal and natural space.

The companys consolidated net profit increased 1.6% to Rs 522.38 crore in Q3 FY25 as compared with Rs 514.22 crore in Q3 FY24. Net sales rose 3.1% YoY to Rs 3,355.25 crore in the quarter ended 31st December 2024.

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