FMCG major Dabur India is expected by analysts to report below average growth in sales and profit for Q4 - less than 3% growth in both sales and PAT compared to the same quarter last year. Religare analysts noted that they "expect the growth to improve going forward, led by demand revival, new launches, increasing focus on innovating offerings and brand building activities." However, the company is struggling with muted growth in international markets.
In the Q3 December quarter, demonetization had taken a toll on the company, and Dabur had reported a 7.3% dip in consolidated net profit and a 6% decline in sales for the quarter. On the domestic front Dabur management says that it has been expanding its rural reach to over 60,000 villages, and also aims to improve its urban presence by increasing the chemist reach.
The firm says its enhancing its focus on Ayurvedic products, which it expects will drive growth in the coming quarters. The company has also recently commissioned its largest ever factory in Tezpur, Assam, which was built at an estimated cost of Rs 250 crore. Dabur India's share price is currently trading above its 200 day SMA.