Dabur India Falls on Earnings Warning for Q3

Shares of Dabur India fell over 3 per cent on Friday after the consumer products firm said that its December quarter earnings will be impacted due to lower juice sales.

Dabur said that the continuing blockade of India-Nepal border has impacted juice sales. Dabur manufactures juice in its plants in India, Nepal and Sri Lanka. Due to the India-Nepal border blockade, it cannot import products into India.

"There is no improvement in the eco-political situation in Nepal till date and the India-Nepal border continues to remain closed. We have lost some part of juice sale in October and November, 2015 and estimated Juice sale during Q3 of FY 2015-16 will be lower by 10-15 per cent vs previous year," Dabur said in a statement to the BSE.

Juice segment contributes 17-18 per cent to Dabur India's standalone business, analysts say.

Dabur said that it has made alternative arrangements to reduce the impact of Nepal border blockade and hopes to get back on track in Q4 of FY 2015-16. "We had already ramped up the production of juices in Sri Lanka & Newai, Rajasthan and have also engaged with third parties to cater to our demand requirement for the month of December and going forward," Dabur India said in the release.

Dabur India shares closed 1.86 per cent lower at Rs 271.70 apiece compared to 1.05 per cent fall in the broader Nifty.