Dabur India gives an outlook on Q3FY16

Dabur India (Dabur) gave an outlook on Q3FY16 financials yesterday. The company is facing eco-political tension across the India-Nepal border. It has lost some part of its juice sale in October and November, 2015 and the estimated juice sale during Q3FY16 will be lower by 10 to 15 per cent as against the previous year.

Dabur, was the first major private Indian company to be hit by the existing political tension in Nepal. The company has a juice plant at Birgunj in Nepal. It estimated lower sales of juice due to disruption of supplies from its Nepal plant. There is no improvement in the cross border situation and the India-Nepal border continues to remain closed.

On the financial front, Dabur's juice business segment contributed to about 12.78 per cent of total revenue amounting to Rs 1000 crore as of FY15. The company will evaluate the impact on inventory and other costs as soon as the border reopens. However, it ramped up the production of juices in Sri Lanka and Newai, Rajasthan. Dabur also engaged third parties to cater to its demand requirements for the month of December and thereafter too.

Dabur's shareholding pattern indicates that FII holdings contracted by 17 basis points to 20.96 per cent and DII holdings too contracted by 20 basis points to 4.42 per cent during the September 2015 quarter. The share price of the company declined by 3.54 per cent on bourses in early trades and is trading at Rs 269.6 on intraday basis.

Dabur is a consumer products manufacturing company. The Company's product portfolio includes over 381 products spread across 21 categories and over 1000 stock keeping units (SKUs). Its strategic business units include Consumer Care Business and International Business. Its Consumer Care Business unit includes healthcare, which consists of health supplements, digestives, over-the-counter (OTC) and ayurvedic ethical products; home and personal care (HPC) products which consists of hair care, oral care, skin care and home care; and foods, which consists of fruit-based beverages and culinary pastes business. Dabur's International Business unit offers a range of hair, skin and oral care products in the Middle East, Africa, South Asia, Europe and Americas. The Company markets its products under the brands: Dabur Chyawanprash, Dabur Honey, Dabur Baby, Dabur Glucose, Vatika, Hajmola, Dabur Lal Tail and Real, among others.