Dabur India down nearly 3% on Q3 earnings warning

Shares of Dabur India fell 2.9% in an early trade on Friday after the consumer products company said that its December quarter earnings will be impacted due to lower juice sales. 

The company said that the continuing blockade of India-Nepal border has impacted juice sales. 

"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 FY15-16 will be lower by 10-15% vs previous year, " Dabur India said in a statement to the BSE on Thursday.

This is a one-time issue beyond our control and will have a near-term impact on Q3 FY15-16 performance, Dabur India added. 

Dabur India said that it has made alternative arrangements to reduce the impact of blockade of India-Nepal border and it hopes to get back on track in Q4 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.  

At 1146 hours, shares of Dabur India were trading down 2.79% or Rs 7.75 at Rs 270.20 per scrip on BSE.