Sunil Duggal, Dabur India‘s CEO told CNBC-TV18 that subdued demand, weak Nepal operations and shift to festive season impacted second quarter earnings.
Sunil Duggal, CEO, Dabur India expects the second half of the fiscal to be better than the first half, both for rural and urban markets, adding that demand was better in September.
Nepal earthquake and currency devaluation on account of economical and political disturbances in Middle East and North Africa (MENA) region- Turkey, Nigeria and Egypt - has impacted the overall margin growth to 7.9 percent, says Lalit Malik, CFO of the company.
Nitin Mathur of SocGen says the consumer segment is just coming out of a prolonged slowdown. “We were in any case not expecting any V shaped recovery to happen, it is going to be slow and gradual process and we are happy that things are on track for that,†he told CNBC-TV18.
According to Sunil Duggal, CEO, Dabur India although urban consumption demand hasn‘t picked up, rural demand has remained resilient despite challenging macros.
Sunil Duggal, chief executive officer, Dabur expects volume growth to be in the range of 6-10 percent and rules out the likelihood of any price reductions.
Dabur India matched street expectations with the third quarter consolidated net profit rising 16.4 percent year-on-year to Rs 282.8 crore. Consolidated net sales grew 9.2 percent to Rs 2,074 crore during October-December quarter from Rs 1,899.6 crore in the year-ago period.
Sunil Duggal, chief executive officer, Dabur India says the company will launch some new products but it will do so with a cautious view.
CFO Lalit Malik said that the company has seen good sales growth in healthcare and skin segment and nearly 45 percent sales came from rural areas
The company expects around 10 percent volume growth and 15-17 percent top line growth in FY14. It is even looking at small international acquisitions to enhance portfolio.
According to Sunil Duggal, the company so far has done well and hopes the uptick will start soon. The company's ad spends have also shaped up in the quarter ended September though not as much as its competitors, he adds.
Speaking to CNBC-TV18, Sunil Duggal, chief executive officer, Dabur India says the company is likely to hike prices to the tune of 3 percent that will help in mitigating the inflation costs.
The fast moving consumer goods company expects steady growth in all categories for FY14, says Dabur India's Lalit Malik.
Dabur India which reported its fourth quarter number today posted a volume growth at 12 percent, which is highest in last 11 quarters. The company said that they will be able to maintain volume growth of 8-10 percent going forward.
Sunil Duggal, CEO, Dabur says that the company‘s consumer discretionary goods portfolio are showing good growth, despite the slowdown. He says that though the fourth quarter numbers would show a reasonably robust demand profile, the possibility of this slowing down in the coming months cannot be ruled out.
In an interview to CNBC-TV18, Sunil Duggal, CEO, Dabur India said although the headline numbers looked a little lower, the domestic consumer business which is the chief generator of profits is growing at 14.5 percent, with almost double-digit volume growth.
In an interview to CNBC-TV18, Sunil Duggal, chief executive officer, Dabur India says , the demand scene seems to be a little bit muted now as compared to six months ago.
In an interview to CNBC-TV18, Sunil Duggal, Chief Executive Officer, Dabur India Ltd. spoke about the performance of the company which released its Q2 results today posting 16% profit to Rs 202 crore in-line with expectations.
With the monsoon playing spoilsport, FMCG companies are likely to be worst hit and chances of downtrading are also high. However, Sunil Duggal, CEO of Dabur India believes there is no evidence of any downtrading or slowdown in consumption despite the fact that consumption is slightly subdued in certain pockets.
Sunil Duggal, CEO of Dabur India believes a good monsoon will be the key to volume growth for the first half of FY13. So far, the monsoon has disappointed and if there is a shortfall, it may dent volumes significantly, said Duggal.
Chief executive of Dabur India Sunil Duggal says they are mulling a 5% price hike in the next quarter so as to overcome margin pressures due to inflation in raw materials.
Despite the unabated pressure on margins, CEO of Dabur India Sunil Duggal tells CNBC-TV18 that he doesn‘t expect margins to fall from here on.
In an interview to CNBC-TV18, Sunil Duggal, chief executive officer of Dabur says, the company expects 10% volume growth in the coming quarters.
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. However, talking exclusively to CNBC-TV18, Sunil Duggal, CEO at Dabur India said that the company does not expect any further margin contraction in Q3.
Sunil Duggal, chief executive officer, Dabur India in an interview to CNBC-TV18 said that the new subsidiary in Singapore is expected capture better margins.