Fast moving consumer goods (FMCG) major Dabur will release its Q2FY20 results on Tuesday. The quarter is expected to be weak owing to slower rural growth. Rural market contributes 50 percent of Dabur's earnings. The rural growth is expected to be half that of urban growth which was also indicated by Hindustan Unilever's (HUL) management.
The total income growth is likely to come in at 6 percent at Rs 2,250 crore and earnings before interest, taxes, depreciation, and amortization (Ebitda) too is expected to grow by 6 percent to Rs 478 crore, which indicate flat margins for the company at 21.5 percent.
The net profit growth is likely to be around 2.3 percent but unlike most other FMCG companies, Dabur does not benefit from lower corporate tax cuts because their effective tax rate is between 18-22 percent.
Domestic volume growth will likely be around 4-5 percent.