Dabur India Limited — Q3 FY24
Dabur delivered a solid Q3 with consolidated revenue of INR 3,255 crore (+7% YoY) and 6% volume growth in India FMCG.
bullish
high
✓ 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.
88%Questions answered0Evaded / deflected12Questions auditedMixedNumbers vs filing
Answered
High priority
What is driving hair oil outperformance and how to revive oral care growth?
Asked by Mihir Shah, Nomura
Management provided specific market share gains and growth rates for both categories.
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Question
Can you share what is working for us in the hair oil portfolio and can this outperformance continue? While in oral, what steps can be taken to get growth back to a higher trajectory?
Mohit Malhotra, CEO
In hair oil, we've gained market shares of 140 basis points... As far as oral care is concerned, our growth is 8%, backed by volume growth of 5%...
Answered
High priority
Will late winter benefit healthcare portfolio sales?
Asked by Mihir Shah, Nomura
Management acknowledged the impact and explained inventory dynamics.
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Question
Can one expect the late onset of winter benefit for flu sales, or will the inventory in the channel be sufficient to take care of the demand?
Mohit Malhotra, CEO
Chyawanprash business got impacted... growth was very muted. We had a flat growth as far as Chyawanprash is concerned... the winter is getting delayed... flushing out of inventory will happen there.
Partial answer
Medium priority
Are higher costs excluding one-offs the new normal?
Asked by Mihir Shah, Nomura
CFO attributed to phasing but did not confirm if costs will revert.
phasing explanationno commitment on future
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Question
Adjusting for the INR 22 crore of one-off of legal cost and other expenses, the costs have still gone up. Is there any additional cost, or will this be the new normal going forward?
Ankush Jain, CFO
Excluding this, this is 10%, but if you see it, there's some phasing issue of certain expenses. If you see YTD, excluding legal cost and other expenses, has grown by only 4%.
Answered
High priority
Is shampoo growth driven by pricing or volume?
Asked by Abneesh Roy, Nuvama Institutional Equities
CEO clearly stated no price growth, all volume-driven.
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Question
Is pricing a big component of this, both on YOY and four-year CAGR basis?
Mohit Malhotra, CEO
There's no price growth here. It is more volume growth. The entire growth is volume growth as far as sachet is concerned.
Answered
High priority
What is price-mix growth in toothpaste and premiumization plans?
Asked by Abneesh Roy, Nuvama Institutional Equities
Management provided price-mix breakdown and outlined premiumization plans.
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Question
If you could tell us what kind of price plus mixed growth you would have seen in toothpaste... would you also now need to think beyond the normal way?
Mohit Malhotra, CEO
We've grown 8% in terms of value... volume growth has been 5%, implying that we have a 3% of price factor... We are working on premiumization segments including whitening, tartar control, gum, sensitive.
Answered
High priority
How much of Badshah's 33% growth is pricing vs volume?
Asked by Abneesh Roy, Nuvama Institutional Equities
CFO gave volume and pricing split and export status.
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Question
This good recovery in terms of growth number, how much is because of pricing? And in terms of exports and going beyond the two states, what is the status on that?
Ankush Jain, CFO
Volume is close to 20-23% in this, and balance is pricing, 9%-10%. Currently, it is primarily in two states. A bit of exports we have started.
Answered
High priority
Why is rural growing ahead of urban for Dabur?
Asked by Arnab Mitra, Goldman Sachs
CEO explained rural outperformance with specific distribution metrics.
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Question
Your release talks about rural growing ahead of urban by 200 basis points. Is it specific to you because of initiatives, or certain categories?
Mohit Malhotra, CEO
Our rural growth is in the range of around 6-6.5% as compared to urban, which is around 3.8%... specific to us... on back of initiatives... reach in terms of villages have moved up from 100,000 villages to 172,000 villages.
Partial answer
High priority
Will Q4 margins be much lower due to phasing?
Asked by Arnab Mitra, Goldman Sachs
CFO cited seasonality but did not quantify expected Q4 margin.
seasonal explanationno specific margin guidance
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Question
Is there any reason to believe this margin would be much lower in the fourth quarter because of phasing or the last two years were aberrations?
Ankush Jain, CFO
You can't see sequentially our margins. The margins are pretty seasonal. Q4 margins are the least, while Q3 are the highest... expansion in margins will continue, albeit at a slightly faster pace in Q4.
Answered
Medium priority
What are key indicators for rural recovery?
Asked by Harit Kapoor, Investec India
CEO listed specific indicators and outlook.
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Question
Where do you think are the maybe top two or three key indicators that can turn to make this slightly more full-fledged recovery in the rural market?
Mohit Malhotra, CEO
Food inflation has picked up... consumer sentiment is improving... gap between urban and rural is reducing... rural recovery is imminent.
Partial answer
Medium priority
How long will the legal issue last?
Asked by Harit Kapoor, Investec India
CFO provided update but did not estimate duration.
no timeline given
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Question
Any visibility on how long we may have to deal with this, three quarters, six quarters, eight quarters?
Ankush Jain, CFO
Courts have decided on corporate separateness... case is now restricted only to products sold in U.S. by Namaste legal entity... less than 1% of our turnover.
Answered
Medium priority
Will legal costs reduce in coming quarters?
Asked by Sheela Rathi, Morgan Stanley
Management confirmed legal costs will reduce next year.
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Question
Is there any change in terms of how we should see the impact on the PNL, at least for the next three, four quarters?
Ashok Jain, EVP Finance
We have changed our lawyers... cost effective from October onwards has already reduced... we do not see the same cost will be there in FY24-25. It will be lower.
Answered
High priority
What is the therapeutic division's revenue and growth?
Asked by Shirish Pardeshi, Centrum Broking
CFO provided specific revenue and growth numbers.
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Question
On slide nine, your comment is 'Newly set up therapeutic division has reported double-digit growth.' Maybe if you can give more color, what is the depth, what are the products which are firing?
Ankush Jain, CFO
Almost 95 crore we have done so far in nine months. So 30-35 crore on average, and YTD growth is almost 21%, while Q3 is 14%.
Quantitative claims vs filed numbers
| Claim | Management said | Filing | Verdict |
|---|---|---|---|
| Oral care value growth 8%, volume growth 5% | 8% | 7% | Matches filing |
| Shampoo growth 11% | 11% | 7% | Overstated vs filing |
| Rural growth 6-6.5%, urban 3.8% | 6.5% | 7% | Matches filing |
| Therapeutic division YTD revenue INR 95 crore | ₹95 cr | ₹3,255 cr | Understated vs filing |
| Therapeutic division YTD growth 21% | 21% | 7% | Overstated vs filing |
| Gross margin expansion ~200 bps in India | 200 bps | 50 bps | Overstated vs filing |
Filed figures sourced from Screener.in. Claims within a small tolerance of the filing are marked “matches filing”.