Hindustan Unilever Ltd on Thursday reported a 6.9 per cent rise in consolidated profit after tax at Rs 2,556 crore in the first quarter ended June 30, 2023, riding on a gradual recovery in the FMCG industry despite operating in challenging environment. The company had posted a consolidated net profit of Rs 2,391 crore in the same quarter last fiscal, Hindustan Unilever Ltd said in a regulatory filing. Consolidated total income in the first quarter stood at Rs 15,679 crore as against Rs 14,757 crore in the corresponding period last fiscal.
Companies from Nestle and ITC to Hindustan Unilever and Patanjali have pledged to reduce use of unhealthy ingredients by five to 50 per cent
ITC highlighted that legal cigarettes account for 9 per cent of tobacco consumption in India, but 80 per cent of tax collection is from tobacco products. While illicit cigarettes account for roughly one-third of the market share, legal cigarette volumes have recovered to around 96 per cent of peak FY13 volumes, after dipping to 70 per cent in FY21.
Talks on with P&G, HUL, Patanjali, among others to push their products via 250,000 common centres
FMCG sector will benefit from measures taken to negate food inflation pressure on common man and also measures to boost disposable income.
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High retail inflation is exerting pressure on households to cut expenses wherever possible.
As rural demand tapers, companies are back at the drawing board, firming up plans to beat the unexpected slowdown in sales.
'What will matter in 2024 from the market standpoint is the direction of interest rates globally, as well as in India.' 'The results of the general elections will also be keenly watched.'
White-collar hiring witnessed an 8.6 per cent annual decline in September, following a negative trend in sectors including IT, BPO or ITES and FMCG, a report said on Monday. On a month-on-month basis, however, there has been a growth of almost 6 per cent in job postings. In September, there were 2,835 white-collar job postings, down by 8.6 per cent compared to the same month last year when 3,103 jobs were posted, according to Naukri.com's monthly 'Naukri JobSpeak Index'.
The FMCG market is gearing up for a boom time again with the onset of three-month festive period spanning Dussehra and Diwali, which had brought in an additional revenue of Rs 844 crore (Rs 8.44 billion) last year.
Trinamool Congress is the second highest recipient of political donations through electoral bonds.
In a relief to FMCG major Dabur, two of its foreign subsidiaries, Dabur International and Dermoviva Skin Essentials, have been removed as a defendant in multiple lawsuits filed in a US court over allegations that their hair-relaxer products caused ovarian cancer, uterine cancer and other related health issues. However, lawsuits filed against its third international subsidiary Namaste Laboratories LLC, would continue before the US District Court for the Northern District of Illinois, according to a statement from Dabur on Wednesday. Dabur International and Dermoviva were removed and got relief in the multiple suits due to lack of jurisdiction as they have not either manufactured, marketed, distributed or sold hair relaxer products in the US, it added.
Profits of India's top listed companies have been growing at a faster pace than those of their American peers, but when it comes to revenue growth, the order has reversed recently. The combined net profit of the S&P 500 companies was up 14.1 per cent year-on-year (Y-o-Y) during the trailing 12 months (TTM) ended December 2023, as against 17.4 per cent profit growth logged by the BSE 500 companies in the same period. This is the second consecutive year of faster profit growth for the BSE 500 companies.
Enthused by robust financial performance and attractive valuations, foreign investors increased their exposure to fast-moving consumer goods (FMCG) companies such as Britannia, Hindustan Unilever and Godrej Consumers Products in April-June this year.
There has been an uptick in interest in the FMCG sector after a long time and results were pretty good this quarter.
FMCG sector analysts say that due to excise free zones, impact of the excise duty hike will be limited, except for Hindustan Lever. The sector wants impetus for rural income generation and no hike in service tax.
If excise duties are revised upwards, it will affect the FMCG sector, which is witnessing sequential rise in its input costs.
Among the Sensex firms, NTPC, Mahindra & Mahindra, Power Grid, Nestle, Tata Motors, ITC, Bharti Airtel and Kotak Mahindra Bank were the major gainers. In contrast, Larsen & Toubro, Wipro, JSW Steel, UltraTech Cement, and Asian Paints were among the laggards.
Indian fast moving consumer goods (FMCG) players are once again on the prowl to acquire companies, as the economy picks up.
Salaries are performance-linked and FY12 was good on both counts; now, persistent inflation and patchy rains show on rural market.
Exemptions on the personal income tax would increase the income in the hands of the consumers, thereby increasing spending.
Even as the slowdown in the information technology (IT) services sector deepens, banking, financial services and insurance (BFSI), as well as oil and gas companies, emerge as the primary drivers of corporate earnings in the country. The IT services sector's share in corporate earnings declined to a five-year low of 17.4 per cent in the second quarter (Q2) of 2023-24 (FY24), whereas banks and finance companies accounted for 46.5 per cent, and oil and gas firms contributed 16.8 per cent. At their peak, IT services firms like Tata Consultancy Services (TCS), Infosys, HCLTech, and Wipro represented just over a third of the combined net profit of all listed companies in the Business Standard sample.
It's not only the Indian markets that command a valuation premium over their global peers; shares of subsidiaries of India-listed multinational companies (MNCs) also trade at rich valuations compared to their parent companies. An analysis of 12-month forward price-to-earnings (P/E) and price-to-book (P/B) multiples of domestically listed MNCs shows that most quotes have a premium ranging from 2.1x to 6x that of their parent. Similarly, P/B, in most cases, is significantly higher in the domestic market.
Since March 2020, when the Nifty50 plummeted to 7,511 following the announcement of a nationwide lockdown, the stock market has been on an upward trajectory. Over the next four years, the major market index has delivered a remarkable compounded annual growth rate (CAGR) of over 31.5 per cent. In the past year alone, the Nifty50 has gained by 27 per cent, hitting a succession of record highs.
According to Nielsen, rural growth has plunged to a low 5 per cent in the third quarter of quarter from a high 20 per cent a year ago. This has for the first time in seven years rural growth has fallen below urban levels.
FMCG stocks have underperformed the market, falling 2.2 per cent so far in 2014.
ITC's results for the January-March quarter (Q4) were strong, with robust growth in the fast-moving consumer goods (FMCG) segment and a good performance in hospitality. The tobacco division's performance was on expected lines, with double-digit volume growth, helped by reclaiming of market share from the smuggled trade. There was 60 per cent growth in non-cigarette earnings before interest and tax (Ebit), despite a relatively weak performance in paperboards.
ITC Limited is planning to aggressively scale up its FMCG business and expand the portfolio by staging an entry into the home and personal care market, in an attempt to be the leading FMCG player in the country.
A major reason for the high growth in advertising spends as these companies are keen on higher volume
Mutual fund equity schemes which only invest in sectors such as banks and fast moving consumer products (FMCG) have emerged top performers across product categories in 2012. But these schemes face stiff challenges to repeat such outperformance in 2013.
Equity benchmark Nifty scaled the psychological milestone of 21,000 in afternoon trade on Friday, and the Sensex touched its all-time intraday high of 69,888.33 after the central bank's decision to keep policy rates unchanged in line with market expectations. The 50-share benchmark index opened on a bullish note, after taking a breather on Thursday, and rose to 21,006.10. As many as 25 stocks were trading in the green, and 24 stocks defied the broader market and were trading in the negative territory.
Players like UltraTech Cement more expensive than ITC and HUL; others catching up fast.
Experts point to the higher contribution of rural from the north for the growth reported by the region, a point endorsed by companies who've been pushing their presence aggressively there.
Ravi Shankar mulls taking his products, available at 600 outlets, to 2,500 stores by 2017; others have plans, too.
FMCG analyst at SSKI Nikhil Vora believes that the next round of growth for the FMCG sector will get powered by a lot of front-ended investment by companies.
For the quarter ended June, most FMCG companies reported growth of 15-20 per cent in revenue, as demand for daily-use items continued to be high.
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