Inflationary Pressures To Impact Margins For Next Two Quarters, Says Dabur
Dabur India Ltd.’s operating margins will “certainly” face pressure stemming from higher inflation and rising fuel costs, according to its Chief Financial Officer Lalit Malik.
“There has been an inflationary impact of 3.5 to 4 percent on input cost of products but our price increase has been from 1.5 to 2 percent,” said Malik in an interaction with BloombergQuint. “Therefore, the differential is something that we intend to absorb through cost reduction initiatives and select price increases.”
India’s inflation based on wholesale prices rose to a four-month high of 5.28 percent in October, mainly due to a spike in petrol and diesel prices, even as food prices softened.
Meanwhile, the international business of the fast-moving consumer goods company has been growing steadily. “Growth of our international business at local currency level has been at a steady pace especially in countries like Turkey, Egypt and Nigeria, despite steep exchange devaluations pulling down revenue at a consolidated level,” said Malik.
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