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A source-linked quarter view: reported numbers, management language, guidance, and the risks that should carry forward.
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Revenue
₹3,204 Cr
verified against source
Revenue YoY
7.3%
reported change
EBITDA
Pending
latest reported figure
Source
screener in
record provenance
Actual signal trajectory
Where this quarter sits.
Quarter read
What the record says.
Dabur's Q2 FY24 consolidated revenue grew 7.3% YoY to INR 3,204 crore, with constant currency growth of 10.4%. International business was a standout, growing 23.6% in constant currency. India business ex-beverages grew 6% with 5% volume growth. Gross margin expanded ~300bps YoY due to material deflation, but A&P spend increased 43% to support brands. PAT grew 14.1% despite INR 36 crore exceptional legal cost related to Namaste LLC litigation. Home care (up 15%) and foods (Hommade +40%) were strong; beverages declined 10% due to uneven rainfall and festive shift. Management expects rural recovery to continue and guides for ~19.5% annual operating margin despite ongoing legal costs. Key risk: escalation of Middle East conflict could impact international business growth.
Colored figures show movement against the previous available record.
Guidance to track
- Management reiterated commitment to ~19.5% annual operating margin despite INR 63 crore legal cost in H1 and recurring costs of ~INR 20 crore per quarter.
- Despite high spice inflation, Dabur remains committed to exiting the fiscal year with a run rate of INR 500 crore from its foods portfolio.
- Direct distribution reach will increase from current 1.4 million to 1.5 million outlets by end of fiscal year.
- Management expects international business to continue high double-digit constant currency growth in second half, barring escalation of Middle East conflict.
Risks flagged
- Ongoing multi-district litigation in US against hair relaxer industry could result in continued legal costs (~INR 20 crore/quarter for ~2 years) and potential revenue loss from relaxer portfolio (25% of Namaste's $45-50M business).
- If the Israel-Hamas war spreads to the broader region, Dabur's international business (MENA region grew 18.4% in Q2) could be adversely impacted.
- South India rural market is lagging due to poor monsoon and credit extension issues, with inventory build-up and delayed payments affecting business.
- New entrant Storia in coconut water impacted Dabur's market share in modern trade; recovery depends on aseptic PET bottle capex (INR 30-40 crore) which may take time to yield results.
Key quotes
- We are pretty confident to what guidance we had given to the market of 19.5%. We'll be either at that or even better that also.
- This litigation is against the entire hair relaxer industry players... Namaste disputes the same and stands by the safety of its products.
- The trajectory of rural is only getting positive as you are lapping over the lower bases, and those lower bases will continue for some time.
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