DABURNSEQ3 FY 2022-23February 2, 2023

Dabur India Limited

6,675words
50turns
1analyst exchanges
5executives
Management on call
Mohit Malhotra
CHIEF EXECUTIVE OFFICER
Ankush Jain
CHIEF FINANCIAL OFFICER,
Gagan Ahluwalia
VP (CORPORATE AFFAIRS)
N. Krishnan
AGM (FINANCE)
Dhruv Sharma
DGM(CORPORATE AFFAIRS)
Key numbers — 40 extracted
rs,
d the comment that now it is fairly large, so it may not expand too much in the next 1 year, 2 years, what would be your comments to that? Mohit Malhotra: Right. So, as far as Oral Care segment is
8%
Care segment is concerned, if you look at the category growth, so category has declined by around 8%. And in 8%, 50% share happens to be the market leader, I think significantly contributed in the p
50%
concerned, if you look at the category growth, so category has declined by around 8%. And in 8%, 50% share happens to be the market leader, I think significantly contributed in the part of that decl
3.2%
et leader, I think significantly contributed in the part of that decline. We have grown at around 3.2% in the Toothpaste segment. While the category has declined by around 8%, our 3-year CAGR is aroun
14%
the Toothpaste segment. While the category has declined by around 8%, our 3-year CAGR is around 14%-15%. We are the market leader in terms of the Herbal segment, which is 30% of the overall market.
15%
Toothpaste segment. While the category has declined by around 8%, our 3-year CAGR is around 14%-15%. We are the market leader in terms of the Herbal segment, which is 30% of the overall market. A
30%
3-year CAGR is around 14%-15%. We are the market leader in terms of the Herbal segment, which is 30% of the overall market. And Dabur Red is continuously gaining share. I don't know and I can't co
Rs. 20 crore
mpt of relaunching our Dabur Red Gel is also doing very well. This year, we should exit at around Rs. 20 crores in the gel market. If you slice and dice the entire oral care market, what we find is that consu
36 basis point
, which is showing great signs of growth. Our Red toothpaste has increased market share by around 36 basis points. Meswak has also grown. And overall, we have become the #2 player in oral care now and replacing
5%
that's what we guys are doing, especially in the Hindi heartland and other places also. There's a 5% CAGR for us in toothpowder in a category which is stagnant. Abneesh Roy: Sir, my second quest
6%
n, extreme temperature. So, would you say that in Q4, you will recoup whatever you lost, say, 5%, 6% in terms of dip in Skin & Salon business? Would that be recouped? Because it's going to
9%
d me. Our e-commerce business is doing exceedingly well. Now e-commerce is contributing to around 9% of the business, and part of the business is steered by new product introductions because we are
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Guidance — 20 items
Mohit Malhotra
qa
“While the category has declined by around 8%, our 3-year CAGR is around 14%-15%.”
Mohit Malhotra
qa
“So, our Red Powder also, if you look at the CAGR of past 3 years, is doing significantly better.”
Mohit Malhotra
qa
“There's a 5% CAGR for us in toothpowder in a category which is stagnant.”
Mohit Malhotra
qa
“So, overall, e-commerce new products will be in the range of roughly around 15% actually NPD contribution will be there on e-commerce.”
Mohit Malhotra
qa
“Ghees, oils, multiple oils that we guys rolled out will be exiting at around Rs.”
Avi Mehta
qa
“Could you give us a sense by when do you expect gross margins to normalize to the 49% to 50% levels?”
Mohit Malhotra
qa
“Going forward, we are expecting the inflation to move to levels of roughly around 5.5%.”
Mohit Malhotra
qa
“The concentrates that we are importing because of the currency devaluation of Indian rupee vis-a-vis dollar, that has become dearer, and therefore, there's a gross margin compression in our Food business going forward, is what we guys see.”
Mohit Malhotra
qa
“So, Food business, because the nuance of inflation changing, there could be going forward some compression.”
Mohit Malhotra
qa
“So, I think going forward, the compression will reduce.”
Risks & concerns — 11 flagged
And in 8%, 50% share happens to be the market leader, I think significantly contributed in the part of that decline.
— Mohit Malhotra
Babool got impacted in this quarter because of the rural decline which is happening across the board, especially in Central India, where we're impacted by the deficit of rainfall.
— Mohit Malhotra
My question is, because of the rural slowdown and because of the downtrading we are seeing across the board, would the toothpowder segment for the industry and for you, would it be higher versus the pre-COVID?
— Abneesh Roy
The concentrates that we are importing because of the currency devaluation of Indian rupee vis-a-vis dollar, that has become dearer, and therefore, there's a gross margin compression in our Food business going forward, is what we guys see.
— Mohit Malhotra
But the market situation is quite in flux and it's volatile, so one can't really comment because it's dependent on war and multiple other macro factors.
— Mohit Malhotra
There are small cheaper players who entered the Beverage segment and they're posing us some challenge in some modern trade specific channels, but which we are handling.
— Mohit Malhotra
What is the sense you are getting in terms of the demand and the inflationary pressure?
— Prakash Kapadia
But if the categories decline, then there is pressure on the #2 player, and that is what is happening now.
— Mohit Malhotra
If you look at the overall trend, then suddenly Q3 has seen a sharper decline.
— Abhijeet Kundu
So, I think it's a 2-state phenomena, which is Bihar and UP because of deficient rainfall and rural slowdown, where rural contribution is also high, has actually pulled us down.
— Mohit Malhotra
But in the near term, Q4 should be under pressure for the industry also as a whole?
— Abhijeet Kundu
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Q&A — 1 exchanges
Q
Right. So, as far as Oral Care segment is concerned, if you look at the category growth, so category has declined by around 8%. And in 8%, 50% share happens to be the market leader, I think significantly contributed in the part of that decline. We have grown at around 3.2% in the Toothpaste segment. While the category has declined by around 8%, our 3-year CAGR is around 14%-15%. We are the market leader in terms of the Herbal segment, which is 30% of the overall market. And Dabur Red is continuously gaining share. I don't know and I can't comment upon the comments of some other person. But as
Abneesh Roy
That's useful. I was in fact comparing like-to-like. So, if you see, quarterly results, obviously, are the more important parameter because in Nielsen we have always seen there can be a lag impact, etc. So, coming back to the toothpaste versus tooth powder because you have said #2 player in dentifrice. My question is, because of the rural slowdown and because of the downtrading we are seeing across the board, would the toothpowder segment for the industry and for you, would it be higher versus the pre-COVID? Not really, almost about the same level in terms of toothpowder. So, the category is s
Speaking time
Mohit Malhotra
23
Shirish Pardeshi
7
Abneesh Roy
4
Prakash Kapadia
4
Avi Mehta
3
Abhijeet Kundu
3
Arnab Mitra
2
Ankush Jain
2
Moderator
1
Ahluwalia Gagan
1
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