FMCG major Britannia Industries' results for the January-March quarter (Q4) of the financial year 2023-24 (FY24) were received enthusiastically by the market with the share going up by 6.7 per cent on Monday to close at Rs 5,061.60 on the BSE. However, analysts said the results were in line with margins, and disappointing in terms of revenue growth. The consolidated net sales (excluding other operating income) rose 3 per cent year-on-year (Y-o-Y) to Rs 4,010 crore in Q4.
Urban and rural FMCG sales growth data for the last five quarters show the latter outperformed the former consistently.
While there is widespread expectation that excise duty is likely to be raised on revenue considerations, the fast moving consumer goods (FMCG) sector pleads for retaining them at current levels to spur demand.
Tata Motors, Bharti, Coal India among key gainers.
With a growth rate of 10 to 12 per cent, pursuing a career in the FMCG sector promises you lots of opportunities to learn alongside a handsome pay package.
The firms record robust 10-15% growth till September. However, despite the enhanced outlays for A&B, companies are looking at adopting cost -cutting measures.
Fair trade regulator CCI on Tuesday said it has approved the demerger of the hotel business of diversified entity ITC Ltd into a separate entity. After the completion of the demerger, shares of ITC Hotels Ltd, a new entity, will be listed on the stock exchanges. The proposed combination relates to the demerger of the demerged undertaking to ITC's wholly-owned newly incorporated subsidiary, ITC Hotels.
Discount retailer DMart (Avenue Supermarts) hit its highest levels in a year and a half last week and is up over 11 per cent in the last one month. The company depends on low operating costs to offer the lowest prices to consumers, which enables sales velocity and scale, further reducing costs. This virtuous feedback loop has helped DMart gain market share in a sector dominated by unorganised stores.
Two of these categories -- detergent cakes and washing powder - account for around 15 per cent of the overall FMCG market of Rs 80,000 crore (Rs 800 billion), according to estimates made by analysts. Leading market research firm A C Nielsen's data for November 2008 show an across-the-category drop in sales volumes compared to the preceding month.
West Bengal is home to 43,000 Durga Pujas, and the business around it is a major economic driver.
'We expect market consolidation and recommend buying during market dips.'
This includes input substitution, overhead management, rationalising personnel - all aimed at reining in expenditure.
Titan Company, Axis Bank, NTPC, Tata Motors, ITC, Tech Mahindra, Bajaj Finserv, ICICI Bank, HDFC Bank and Bajaj Finance were the other laggards. Bharti Airtel, Power Grid, Infosys and Larsen & Toubro were among the gainers.
Stocks of fast moving consumer goods companies have been on a roll. From packaged food to personal care products, almost every category has been clocking robust growth over the last year.
Among the index heavyweights, Reliance Industries ended down 1.9% while mortage lender HDFC eased 0.2%. FMCG major ITC ended down 1.3%.
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.
FMCG majors who have been advertising actively in the ongoing world cup are undeterred by India's uncertain position in the tournament and are ready to continue their aggressive marketing even if the team was unable to qualify to the next round.
Price-led growth during the quarter is likely to stand at three to five per cent
'We are confident that over the next few years the government will strike a fine balance between populist measures and growth, and manage coalition partners well.'
Household consumption recovered in urban India in May-July but remains weak in rural.
If an entire business is constructed on the platform of one brand ambassador, there is inherent risk of life-after.
The 2012 'Campus Track' survey results by Nielsen suggests that majority of MBAs preferred to work with FMCG firms, followed by consulting and banking firms in that order.
The tobaccos-to-hospitality major ITC has earmarked an whopping Rs 23,000-crore (Rs 230 billion) investment over the next seven to ten years for its FMCG, paper and hospitality businesses.
Equity benchmark index Sensex on Wednesday crashed over 900 points to sink below the 73,000 level due to widespread selling pressure amid a sharp fall in smallcap and midcap indices. Besides, deep losses in utility, energy and metal stocks and recent selling by foreign investors added to the gloom, analysts said. Benchmark indices started the session on a positive note, but the selling intensified during afternoon trade, with all sectoral indices ending in the red.
After demonetisation, sharp fall in PE valuation offers an attractive entry point into some quality names and these 3 FMCG companies are expected to see the fastest growth in earnings with at least 15 per cent upside potential
Even as banks and finance companies are reporting record-high earnings, their weighting in the benchmark National Stock Exchange Nifty50 Index has seen a downward trajectory. Investors expect a stronger performance from other sectors in the new year. Currently, banking, financial services and insurance (BFSI) companies collectively hold a weighting of 34.5 per cent, down from 36.7 per cent at the end of December 2022 and a record high of 40.6 per cent at the end of December 2019. This represents the sector's lowest weighting in the index since December 2021 when it stood at 33.7 per cent.
The "asset-right" strategy, reiterated by ITC chairman Sanjiv Puri during the company's 112th annual general meeting (AGM) on August 11, received a thumbs up from the analysts. They, however, believe that sustained earnings growth and synergies with the demerged hotel's vertical will help the stock break out from the ongoing consolidation. "The stock is expected to consolidate between Rs 420 and Rs 450 in the near future.
The Mumbai-based Shah family of the diversified Anchor Group has decided to put its FMCG portfolio of oral care and personal care products on the block, according to two independent sources.
Domestic customers will get access to high-quality Swiss products such as watches, chocolates, biscuits, and clocks at lower prices as India will phase out customs duties under its trade pact with the EFTA bloc on these goods over a period of time. India and the four-European nation bloc EFTA signed a trade and economic partnership agreement (TEPA) on Sunday to boost trade and investments between the two regions. The European Free Trade Association (EFTA) members are Iceland, Liechtenstein, Norway, and Switzerland.
Domestic customers will get access to high-quality Swiss products such as watches, chocolates, biscuits, and clocks at lower prices as India will phase out customs duties under its trade pact with the EFTA bloc on these goods over a period of time. India and the four-European nation bloc EFTA signed a trade and economic partnership agreement (TEPA) on Sunday to boost trade and investments between the two regions. The European Free Trade Association (EFTA) members are Iceland, Liechtenstein, Norway, and Switzerland.
The FMCG sector has the potential to deliver above-average growth over the long term
As urban shoppers tighten their belts, companies are betting on rural consumers and smaller packs to fire up sales.
Dabur India has been the worst performer in the fast-moving consumer goods (FMCG) space this year (CY23), posting a 1 per cent decline even as its peer index, the Nifty FMCG, has delivered returns of over 29 per cent in this period.
Lower income groups earning less than Rs 100,000 a year are yet to recover as are those earning between Rs 100,000 and Rs 200,000.
'Due to rural stress, volumes continue to remain an issue for the industry, and we are yet to see any revival in demand.'
