AgenciesFMCG major Dabur India Ltd on Friday said the adverse currency movements in its international business and price pressures will have an impact on its operating margin in the near term, which is expected to be lower by 200-250 bps as compared to Q3FY22.
In its quarterly business update, the company said that overall, it expects consolidated revenue to report low to mid-single-digit growth.
The company expects gross margin to improve sequentially due to a pick-up in demand in India towards the end of the quarter. It said that demand trends for the industry remained weak during the third quarter of the ongoing fiscal, with rural markets continuing to remain under pressure.
"This was further accentuated by late onset of winter in north India. However, early signs of moderate recovery were visible towards latter part of the quarter coupled with some abatement in inflation. The improving macroeconomic environment, positive steps being taken by the government and the expected stimulus of the upcoming Union Budget should help speed up the recovery of the industry," it said.
It expects rural markets to be further bolstered by the upcoming harvest season, MSPs and expected spending by the government after it showed early signs of recovery towards the end of the quarter.
Declines in Turkish and Egyptian currencies and high cost of sales have put a damper on its international business in recent times, it said in a stock exchange filing. The company earns a quarter of its revenue from overseas markets.
Dabur is expected to report earnings for the third quarter on February 2.
In its quarterly business update, the company said that overall, it expects consolidated revenue to report low to mid-single-digit growth.
The company expects gross margin to improve sequentially due to a pick-up in demand in India towards the end of the quarter. It said that demand trends for the industry remained weak during the third quarter of the ongoing fiscal, with rural markets continuing to remain under pressure.
"This was further accentuated by late onset of winter in north India. However, early signs of moderate recovery were visible towards latter part of the quarter coupled with some abatement in inflation. The improving macroeconomic environment, positive steps being taken by the government and the expected stimulus of the upcoming Union Budget should help speed up the recovery of the industry," it said.
It expects rural markets to be further bolstered by the upcoming harvest season, MSPs and expected spending by the government after it showed early signs of recovery towards the end of the quarter.
Declines in Turkish and Egyptian currencies and high cost of sales have put a damper on its international business in recent times, it said in a stock exchange filing. The company earns a quarter of its revenue from overseas markets.
Dabur is expected to report earnings for the third quarter on February 2.
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