Second Quarter - Dabur India Limited

Dabur India Limited Q2/H1Earnings Conference CallOctober 31 st , 2008bit ahead of what we have been doing, so overall you would probably see revenue growthnot very different from what we have today, if we are lucky we will be able to up it a littlebit but I do not see any substantial downsides to this and I think the basic challenges interms of margins has been addressed, second quarter was perhaps the most inflationaryperiod, which we have been through. We see commodity prices correcting themselves. Weare sitting on top of some fairly high prices and if there is some contraction in terms ofcommodity prices that will be to our advantage.Nikhil Vora:There would not be a pass through of all the savings on the quarter.Sunil Duggal:There could be but prices tend to be sticky and at least there would not be any MRPreductions I can guarantee, whether they would be higher lubrication of trade or freebies,well let us wait and watch, lot will depend upon I think the context of the competition butwe believe we can sit on higher margins at least for the domestic business in the third andfourth quarters than what we have seen in at least the second quarter which was not in itselfa bad quarter from the margin point of view.Nikhil Vora:Okay. Thanks Sunil and all the best.Aniruddha Joshi of Anand RathiAniruddha Joshi:Hello Mr. Duggal. Congratulations for excellent set of numbers.Sunil Duggal:Thank you very much.Aniruddha Joshi:Sir, just wanted to check with you, have you started seeing any down trading; means has theslowdown started in the industry, what is your experience?Sunil Duggal:Not visible. You know there are two elements with this business, there is rural and there isurban. The rural growth story remains completely intact; in fact it seems to haveaccelerated a little bit. Urban, well there seems to be some fallout in terms of modern trade.We are seeing substantially lower off take of modern trade because quite frankly many ofthese guys are not paying up, so we have stopped supplies, so that impacts growth to someextent, but I do not believe that demand has shrunk, but modern trade which was driving alot of urban growth has now begun to unravel a bit and we are seeing a lot of change nowgetting in to default and making very slow payments, so we are obviously calibrating oursupplies to them quite a bit.Aniruddha Joshi:Okay, but we do not see any slowdown currently happening despite income levels acrossthe industries coming down?Sunil Duggal:No not yet. You know, we do not operate in the luxury segment which is probably the firstone to get impacted, it will be the very high-end cosmetics or whatever would get impacted