Homegrown FMCG major, Dabur India, on Thursday said it expects double-digit growth if Narendra Modi government announces any farm package in the interim 2019 budget.
In an interview to CNBC-TV18, Sunil Duggal, chief executive officer, said, "I do think that the demand will trend up especially if schemes like the universal basic income etc comes up. It will give massive boost to consumption at the lower-end of the market. So, growth will come from the bottom of the pyramid and could be spectacular if many of the schemes fructify into action."
Duggal said, "Domestic business was on solid ground and one could see further acceleration post the budget announcement tomorrow in terms of subsidies and stimulus, which could fuel consumption."
"Even if there is no stimulus in the interim budget tomorrow, the demand trends in rural India are showing steady signs. So, there is no stress as far as domestic business is concerned," he said.
Further, Duggal said, "The overseas numbers look soft because of currency headwinds, economic instability."
Sharing the reason for better than expected numbers, he said, "It has been possible because of massive investments in rural infrastructure over last 2-3 years. However, one cannot just rely on infrastructure build up and so marketing function will drive growth in terms of new products, higher investments in current categories and that will be the fuel."
Dabur reported 10.26 percent rise in the third-quarter net profit at Rs 367.21 crore. The company's profit in the October-December period of 2017 was Rs 333.03 crore, Dabur India said in a BSE filing.
Total income stood at Rs 2,274.46 crore, marking a rise of 11.88 percent from the year-ago period when the income was Rs 2,032.78 crore. Total expenses were at Rs 1,815.41 crore in the third quarter as against Rs 1,616.63 crore in the same period a year ago.
Revenue from consumer care business was up 12.66 percent to Rs 1,911.56 crore during the reported quarter as against Rs 1,696.66 crore earlier. Revenue from food business grew 7.55 percent to Rs 226.60 crore.
Retail business was at Rs 34.24 crore as compared to Rs 32.09 crore in the year-ago period. Revenue from other segments stood at Rs 21.42 crore, up 4.53 percent year-on-year. The company's board approved appointment of Mohit Malhotra as the next CEO, to succeed Duggal. His appointment will be effective from April 1, 2019, it said.