Weak volume growth spoilt the Dabur show in Q4; rural demand holds the key

Though revenue rose by 4.7 per cent, net profit declined during the January-March period

The biggest takeaway for investors in Dabur India’s March quarter (Q4) earnings is that a revival in rural demand is going to play a dominant role going forward. Especially as it has a 46 per cent share of the rural market, Dabur’s numbers are viewed as a barometer to gauge India’s rural demand. However, in anticipation of a lacklustre Q4, Dabur’s stock price came under pressure in Thursday’s trade. After the results were announced, the stock shed closed nearly four per cent lower than it did in the previous session.

The fast-moving consumer goods (FMCG) major clocked a measly 4.3