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Dabur India Ltd. anticipates revenue growth to be between low to mid-single digit in the December quarter due to a challenging macro-economic environment and muted growth shown by its various businesses.

In its quarterly business update, the company said that demand trends for the FMCG industry remained weak and that rural markets continue to remain under pressure. A late onset of winter in North India added to the pressure as most of its products like the Chawanprash sell more during winters.

However, it did witness some early signs of recovery towards the end of the quarter.

The company expects rural markets to recover further ahead of the upcoming harvest season, MSPs and expected spending by the government.

With regards to its various businesses, the company's healthcare portfolio returned positive growth trajectory as it still navigates the high bases of the pandemic. The F&B portfolio may expect some moderation due to the early onset of the festive season.

Dabur's international business is expected to post double-digit revenue growth in constant currency terms. However, currency headwinds in Turkey and Egypt may impact the reported growth in rupee terms.

Gross margin for the quarter is likely to improve marginally compared to the previous quarter as inflation started to cool off during the quarter. Inflation and adverse forex movement may hit operating margin by 200-250 basis points during the quarter.

Dabur continues to invest strongly behind power brands, innovation and distribution expansion.

Earlier this week, Dabur India completed the acquisition of a 51 percent stake in Badshah Masala Private Ltd for Rs 587.52 crore. After the completion of the transaction, Badshah Masala became a subsidiary of Dabur India Ltd from January 2, 2023.

Shares of Dabur India ended 3.5 percent lower at Rs 552.90.

First Published:Jan 6, 2023 3:47 PM IST