Dabur India Limited — Q2 FY25
Dabur's Q2 FY25 consolidated revenue declined 5.5% YoY due to a one-time inventory correction in general trade, aimed at improving distributor profitability.
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✓ 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.
92%Questions answered0Evaded / deflected12Questions auditedContradictedNumbers vs filing
Partial answer
High priority
Toothpaste growth vs competitors and competitive intensity in Q2.
Asked by Abneesh Roy, Nuvama
Answered own performance but avoided quantifying competitor growth or structural nature of intensity.
declined to comment on competitor specificsno volume growth number given
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Question
So we have seen three results till now in that space. So you have also grown 5%, and the market leader has grown double-digits... So one, how do you see your growth versus the other two players? Second, have you seen a sharp ramp-up in the competitive intensity in Q2?
Mohit Malhotra, CEO
Overall, Oral Care category is growing quite well. We have grown ahead of the category at around 5% value, and we've gained market shares also in Dabur Red... As far as competitive intensity in India is concerned, yes, from the competitor and the market leader, we've seen competitive intensity going up...
Answered
High priority
Impact of Campa Cola on fruit juice business and pricing.
Asked by Abneesh Roy, Nuvama
Provided specific pricing details and actions, though impact quantification was indirect.
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Question
Coca-Cola is also looking to cut prices from INR 25- INR 20 in the 400 ml. So if you could talk about that, how does that impact your price architecture? Second is, if you could discuss Campa Cola in your market, how much is now the presence?
Mohit Malhotra, CEO
For us, the one-liter pack happens to be INR 130, and for colas, the one-liter pack happens to be around INR 50. So the price index RPI has gone up to 2.7... We'll be increasing our value proposition... introducing INR 100 price points...
Answered
High priority
Structural shift from juice to fizz and margin impact.
Asked by Abneesh Roy, Nuvama
Gave clear view on structural nature and margin direction with reasoning.
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Question
In terms of the shift from the juice towards the fizz, would that be structural in nature? ... what happens on margins?
Mohit Malhotra, CEO
I don't think it's a structural change. ... penetration of juices or fruit-based beverages in India is 8% as compared to China, 25%. ... margins in the total juice portfolio have actually moved up...
Answered
High priority
Reason for high inventory correction and urban slowdown bottoming out.
Asked by Abneesh Roy, Nuvama
Explained inventory correction cause and provided rationale for urban bottoming out.
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Question
So this inventory correction you have done... how come it impacts overall business and the quantum... you also said that urban slowdown has bottomed out... what is your confidence?
Mohit Malhotra, CEO
Beverage business is the one which exacerbated the whole issue... inventory piles up... when we took correction, this correction has happened across the board... As far as urban is concerned, why I say it's bottomed out is because... base effect...
Answered
High priority
Is GT inventory correction behind and what is normal H2 growth?
Asked by Mihir Shah, Nomura
Gave clear confirmation and quantified expected growth rate.
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Question
Would it be fair to assume that the GT inventory correction is now behind completely and Q3 will be a normal growth quarter? And what, according to you, is normal growth in volume and value terms in the second half?
Mohit Malhotra, CEO
I think inventory correction is behind us. ... Second half, we expect to grow back to normal. Mid- to high-single-digit growth rate for H2 is what we think should be normal.
Answered
Medium priority
Performance of Dabur Amla and hair oil portfolio.
Asked by Mihir Shah, Nomura
Provided specific market share gain and brand strategy details.
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Question
If you can give any qualification or quantification, if you can, on how your Amla, Dabur Amla has done, and how do you see that portfolio shaping up?
Mohit Malhotra, CEO
In hair oils, we are market leaders in the perfume category... Dabur Amla is our cash cow... We've done well in hair oils, in perfumed hair oils, wherein we've gained around 120 basis points...
Partial answer
Medium priority
Health supplement growth outlook and Chyawanprash performance.
Asked by Mihir Shah, Nomura
Answered on Chyawanprash but avoided naming the underperforming segment.
did not specify which sub-segment dragged growth
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Question
Do you expect this continued? ... which one did not do well, which led to overall growth to be lower at 2% for health supplements if Chyawanprash grew by 12%?
Mohit Malhotra, CEO
We are having no hold on to anything... Chyawanprash should continue to grow. ... monsoon campaign gave us great dividends in terms of this 12% growth that you see.
Answered
High priority
FY25 margin outlook after inventory correction.
Asked by Avi Mehta, Macquarie
Provided specific margin impact and outlook for H2.
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Question
With inventory correction largely driving up almost 100 basis points contraction in reported margins... could you help us understand how should we look at FY25 margins?
Ankush Jain, CFO
At a GT and at an actual level, it is almost 100 basis points correction. ... if the top-line happens to the level of mid to high single-digit, then I think we should be able to leverage cost and protect margins for S2 at least. ... almost flatish margins at this level in Q2.
Answered
High priority
EPS impact and synergies from Sesa acquisition.
Asked by Avi Mehta, Macquarie
Gave timeline for EPS impact and target margin.
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Question
Could you help me understand the EPS impact over the next few years? ... could you give us a sense on what are the synergies quantum that you're looking over here?
Ankush Jain, CFO
Next one and a half years, there'll be no impact on Dabur EPS to start with. Post that, ... operating margin should inch up to 18%-19%, which is similar to Dabur once the complete synergies get in.
Answered
Medium priority
Distributor ROI improvement beyond inventory reduction.
Asked by Harit Kapoor, Investec
Listed multiple specific actions taken to improve distributor ROI.
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Question
Apart from this nine-day reduction, has there anything else been done, whether it's credit periods or overall percentage margin, etc.?
Mohit Malhotra, CEO
For the past couple of months, we've been giving a little extra credit to the distributors also. ... we shifted them from their payroll to a third-party payroll... some part of the margin was given back to them...
Answered
Medium priority
Distributor inventory days after correction and path to 19 days.
Asked by Percy Panthaki, IIFL Securities
Provided current and target inventory days clearly.
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Question
After this pipeline correction, what is the distributor days now?
Mohit Malhotra, CEO
Around 21 days. And we want to bring it down to around 19 days by end of December.
Answered
Medium priority
Namaste litigation spend and timeline.
Asked by Kunal Vora, BNP Paribas
Provided specific spend numbers and timeline estimate.
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Question
How much did you spend in first half? And what's the status now? How much longer do you expect to continue spending on it?
Ankush Jain, CFO
In first half, we have spent around INR 40 crores- INR 45 crores. We expect around INR 85 crores-INR90 crores in full year. ... We think around one and a half years from now is the best estimate...
Quantitative claims vs filed numbers
| Claim | Management said | Filing | Verdict |
|---|---|---|---|
| Oral care grew 5% value, gained market shares | 5% | -5.5% | Overstated vs filing |
| Chyawanprash grew 12% in Q2 | 12% | -5.5% | Overstated vs filing |
| H2 growth expected mid to high single-digit | 5% | -5.5% | Overstated vs filing |
Filed figures sourced from Screener.in. Claims within a small tolerance of the filing are marked “matches filing”.