Dabur India Limited — Q2 FY24
Dabur's Q2 FY24 consolidated revenue grew 7.3% YoY to INR 3,204 crore, with constant currency growth of 10.4%.
neutral
medium
✓ Verified against BSE filing
Claim Ledger
Did management answer the analysts?
Every material analyst question, graded on whether management actually answered it — with the verbatim exchange and quantitative claims checked against filed numbers.
96%Questions answered0Evaded / deflected12Questions auditedMixedNumbers vs filing
Partial answer
High priority
Home care growth drivers and Odomos market share gain details.
Asked by Abneesh Roy, Nuvama Institutional Equities
Answered growth drivers but did not provide the base number for market share gain.
did not specify base for market share gain
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Question
My first question is on home care. ... this 560 basis points gain in market share for Odomos, on what number is such a sharp gain? What is driving this?
Mohit Malhotra, CEO
Home care is under-penetrated... Odomos is more out-of-home consumption... As far as our extension of Odomos into LVP is concerned, early days yet... a turnover of roughly around INR 4-5 crore is that we've got.
Answered
High priority
Beverage business underperformance vs cola companies.
Asked by Abneesh Roy, Nuvama Institutional Equities
Provided specific reasons and actions to address the decline.
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Question
My second question is on the beverage business. ... you are at a double-digit decline. ... is it a one-off? ... can you close the gap in terms of performance?
Mohit Malhotra, CEO
Festive season impacted us... North India got impacted by incessant rainfall... there is a new player called Storia... We are putting in a CapEx worth around INR 30-40 crores...
Answered
High priority
Legal cost insurance coverage and industry action on Namaste case.
Asked by Abneesh Roy, Nuvama Institutional Equities
Provided specific cost figures and explained insurance coverage and joint defense group.
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Question
In terms of the legal cost... any part of the insurance claims can cover that also? ... is a collective action also being thought about?
Mohit Malhotra, CEO
We have a product liability insurance... covers any claims or damages... the insurance is covering a part of the legal cost... We've incurred an expense of around INR 36 crores in the quarter... going forward... around INR 20-odd crores per quarter...
Answered
Medium priority
Peak of advertising spend given volume growth.
Asked by Abneesh Roy, Nuvama Institutional Equities
Clarified current spend level and future plans.
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Question
In your case, 40% plus advertising spends are happening. ... are we now at the peak of the advertising spend?
Mohit Malhotra, CEO
We are still at around 7.5-8%. We think the band of advertising to sales ratio in this category should be around 8%-10%. We will continue to ramp up advertising investment...
Answered
High priority
Seasonal pickup in October for juices and Chyawanprash.
Asked by Aditya Soman, CLSA
Provided specific October growth figure.
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Question
Are we seeing any sort of pickup in October as we enter the festive season?
Mohit Malhotra, CEO
October has just gone past, and we've seen our beverage growth at around 10% odd levels in the quarter already started...
Answered
Medium priority
Drivers of Odonil's strong performance and market share gains.
Asked by Aditya Soman, CLSA
Provided category growth rate and own growth, plus product extension details.
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Question
In terms of home care, we've seen very strong numbers. In particular, Odonil. Anything to call out what's really driven this?
Mohit Malhotra, CEO
The penetration of home care category is low... category is growing by 20%. Our entry sale is in the range of around 23%... we launched a gel pocket... doing considerable well...
Answered
High priority
Confidence in maintaining above 20% operating margin.
Asked by Arnab Mitra, Goldman Sachs
Reiterated annual guidance of 19.5% margin.
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Question
Would you now be a lot more confident of doing, holding, you know, above a 20% margin for the rest of the year?
Mohit Malhotra, CEO
We have already given a yearly guidance, and we'll maintain by around 19.5% annual operating margin... Despite the legal cost... we are pretty confident...
Answered
High priority
Health supplements softness and second-half growth drivers.
Asked by Arnab Mitra, Goldman Sachs
Provided specific growth/decline figures for key brands.
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Question
Health supplements... was the one kind of soft aspect in this quarter... anything to call out for why this quarter was softer?
Mohit Malhotra, CEO
The default came in from Chyawanprash. Because of the season shifting by 20 days... Honey continues to gain share... grew by around 6-7%... Chyawanprash actually declined at around -7%...
Answered
High priority
Impact of legal case on Namaste sales and duration of legal costs.
Asked by Arnab Mitra, Goldman Sachs
Provided impact on sales and cost duration estimate.
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Question
Does that sale get impacted in any way because of the legal challenge? ... this INR 20 crore cost that you said, how many quarters do you think this continues?
Mohit Malhotra, CEO
There is a little bit shadow cast on the business... relaxer business is impacted... we will expedite to build non-relaxer portfolio... legal cost... around INR 20-22 crore per quarter... such multi-district litigations take invariably two years...
Answered
High priority
Rural uptick and regional variations.
Asked by Shirish Pardeshi, Centrum
Provided rural volume growth figure and regional breakdown.
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Question
You mentioned during the CNBC interview that there is a rural uptick... where the rural problems is still not recovered or below expectation?
Mohit Malhotra, CEO
Rural moved to 6.7% in terms of volume... South India for us is lagging... North, with winter coming in, should pick up...
Answered
Medium priority
Expected healthcare growth in second half.
Asked by Shirish Pardeshi, Centrum
Provided a specific growth expectation range.
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Question
Can we expect against 5% growth... in healthcare? Should we double or high double digit?
Mohit Malhotra, CEO
I can't say high double digits, but maybe high single definitely... high single is what we expect...
Answered
High priority
International business revenue and margin trajectory in H2.
Asked by Shirish Pardeshi, Centrum
Provided growth and margin expectations with specific numbers.
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Question
How we should look at the overall revenue growth and margin trajectory in the second half for the international business.
Mohit Malhotra, CEO
We will expect a double-digit growth and a high double-digit growth in constant currency... gross margins improve by around 600 basis points... margin upside on gross margin will again keep trending up...
Quantitative claims vs filed numbers
| Claim | Management said | Filing | Verdict |
|---|---|---|---|
| Rural volume growth of 6.7% | 6.7% | 7.3% | Matches filing |
| Beverage growth of around 10% in October | 10% | 7.3% | Overstated vs filing |
| Honey grew by around 6-7% | 6.5% | 7.3% | Matches filing |
| Chyawanprash declined at around -7% | -7% | 7.3% | Understated vs filing |
| Odomos LVP turnover of INR 4-5 crore | ₹4.5 cr | ₹3,204 cr | Understated vs filing |
Filed figures sourced from Screener.in. Claims within a small tolerance of the filing are marked “matches filing”.