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Rural recovery, robust volume growth help Dabur post incremental gains

Its ability to maintain margins will depend on the raw material cost basket

Dabur India
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Gross margins are expected to be under pressure in the current quarter (Q2) before improving in the second half of the financial year due to softening raw material prices and pass-through of price hikes.

Ram Prasad Sahu New Delhi
Aided by robust volume growth and a resilient rural segment, consumer major Dabur India delivered in-line revenue performance in the June quarter. Barring health supplements, which came off a high base and saw a steep 35.5 per cent drop over the year-ago quarter, large segments such as foods, hair care and oral care saw sizeable growth in the quarter.

Consolidated sales growth of 8 per cent was largely on account of domestic performance (up 9.3 per cent) even as international revenues, which account for 24 per cent of revenues, were flat due to unfavourable currency translation impact.

Despite a higher