Don't expect further margin contraction in Q3: Dabur India

In its second quarter results reported today, Dabur India announced its sales figure at Rs 1,269.72 crore up by over 30%, however, the company witnessed some depression in the margins.

Talking exclusively to CNBC-TV18, CEO, Sunil Duggal said that the soaring input costs in Q2 have been the key reason for the margins being hurt. "Also, the inflation outlook is a major concern for the business. Soaring inflation will force the company to hike prices, going forward," Duggal said. Further, he said the business restructuring in Q2 impacted the company's volume growth. Nevertheless, he said, "We do not expect any further margin contraction in Q3." Below is an edited transcript of Sunil Duggal's interview to CNBC-TV18. Also watch the accompanying video. Q: For the domestic business, what is the volume growth and what is the contribution of the price increase that you had undertaken? A: It has been a blend of price increases and volume growth. The volume growth has been around 5% for the domestic branded business and the balance has been made up of price. Q: On a year on year basis, the growth has also been lot more by consolidation of the Namaste Group and the Hobi Kozmetik. Could you tell us, on a like to like basis what the numbers would look like to get an understanding? How much the contribution of these two have been in this quarter? A: Yes, if did like to like basis