From the Sensex pack, NTPC jumped nearly 4 per cent after the company posted over 23 per cent rise in consolidated net profit in the April-June quarter of 2023-24. Power Grid, Tech Mahindra, Tata Steel, Tata Consultancy Services, Wipro, Maruti and JSW Steel were among the other major gainers.
With substantial cash reserves, a buoyant domestic market and increasing global opportunities, almost every consumer goods (FMCG) company is looking for acquisition targets.
The FMCG sector has grown consistently during the last three to four years and is expected to grow at 12-15 per cent over the next three to four years.
FCMG companies which have plants i Npal may take a hit on revenues.
Kotak Mahindra Bank was the biggest loser from the Sensex pack, skidding 1.83 per cent, followed by Axis Bank, NTPC, Hindustan Unilever, ICICI Bank, Bharti Airtel, Reliance Industries, HCL Technologies, IndusInd Bank and Nestle. In contrast, Bajaj Finance, Bajaj Finserv, Tech Mahindra, Tata Consultancy Services, Titan, Infosys, HDFC Bank, HDFC and ITC were the gainers.
Foreign portfolio investors (FPIs) have withdrawn over Rs 12,000 crore from Indian equities this month so far, mainly due to a sustained rise in US bond yields and the uncertain environment resulting from the Israel-Hamas conflict. However, the story takes an intriguing turn on observing FPI activity in Indian debt as they have infused over Rs 5,700 crore into the debt market during the period under review, data with the depositories showed. Going ahead, the trajectory of FPIs' investments in India will be influenced not only by global inflation and interest rate dynamics but also by the developments and intensity of the Israel-Hamas conflict, Himanshu Srivastava, associate director - manager research, Morningstar Investment Adviser India, said.
Though private labels comprise 10 to 12 per cent of the overall FMCG volumes, analysts said they were recording double-digit growth annually and could pose problems for the big players in the near future.
Chocolate majors, home and surface cleaning companies, beauty brands say that business has been brisk this festive season.
ITC Ltd on Friday reported a 23.09 per cent increase in consolidated net profit at Rs 5,070.09 crore for the third quarter ended December 2022, helped by growth momentum across its operating segments. The diversified company had posted a net profit of Rs 4,118.80 crore during the October-December quarter of the previous fiscal, ITC said in a regulatory filing. Its revenue from operations was up 3.56 per cent to Rs 19,020.65 crore during the quarter under review, as against Rs 18,365.80 crore in the corresponding period of the previous fiscal.
ITC's net profit grew the fastest, followed by HUL and Asian Paints.
Himalaya Herbal Healthcare is looking for a Sales Officer.
However, the government's draft policy on e-commerce companies has forced consumer companies to also adapt to the changes. For Dabur India, e-commerce channel continues to be a key driver of growth in urban India. The contribution of online sales to its entire portfolio is at six per cent compared to 1.5 per cent before the pandemic.
Commenting on markets, Sanjay Lodha, Senior Investment Advisor of Pictet Asia Private Banking states that Pictet Asia is bullish on infrastructure, FMCG and banking.
Top companies reported that despite most of them making staples and essential products, movement of raw material, goods and labour remained restricted, impacting sales.
Kishore Biyani, who owns the Future Group and its associated retail chains, is seeking support from rival retailers to challenge the might of Hindustan Unilever, Cadbury, Britannia and other confectionary, food and fast moving consumer goods companies (FMCG) to bargain for higher margins.
Growth numbers for the large players in the sector, though, improved during the quarter.
Nirma's tryst with the pharmaceutical space started in 2006 when it acquired the ailing Core Healthcare in a deal reported to be worth Rs 300 crore. The Ahmedabad-based manufacturer of intravenous fluids was subsequently renamed Nirlife. Pharma industry insiders say Nirma, which broke open the detergent market in the 1990s with low prices and massive advertising, tried an encore of the low-price strategy in pharma, but with mixed results.
Fast moving consumer goods (FMCG) companies are changing the product formulation, including alternative raw materials, to make soaps, detergents and personal care products. The move is aimed at cutting costs by as much as 10 per cent and boosting margins.
"For the first time in India, Sahara India Pariwar is setting up the largest FMCG company in the country with its own distribution network through over 10,000 franchisee outlets...," Sahara India said in a public announcement.
India was the flavour of the year, at least in the FMCG sector, as multinationals hiked stakes in their subsidiaries lured by long term potential of the country, while homegrown executives made their way to top hierarchy of global firms in 2013.
After a gap of five years, Hindustan Unilever has bagged slot zero position on B-school campuses. In 2007, the company had slipped to number 14 on the recruiters' list of B-schools. "It's an improvement of our brand value and affirmation of our employer brand," says Leena Nair, executive director HR, Hindustan Unilever.
@015 may be a good year for FMCG firms.
Domestic equity markets, which are at record high levels, will be driven by quarterly earnings, global trends and foreign fund movement, analysts said. The movement of rupee and global oil benchmark Brent crude will also be tracked by investors. "The direction of global stock markets, fluctuations in the rupee-to-dollar exchange rate, and movement in crude oil prices will all play a crucial role in influencing the overall market trend.
The combined net profit of "early bird" companies, those that have declared their quarterly results, rose for the third consecutive quarter in July-September 2023 (Q2FY24). But the figures suggest a continued slowdown in revenue growth and stagnation in earnings over recent quarters. This slowdown is severe for companies in the manufacturing and non-financial service sectors.
Baba businesses are sprucing up their act as they expand product portfolios and enhance brand image
Dabur has launched 44 products during the year.
While Emami is still struggling to push growth, given weak rural demand, the sale of the group's stake in AMRI Hospitals should ease investor concerns about stake pledges by promoters. It has also carried a series of stake acquisitions which should enable the expansion of its brand portfolio. The Q2 results are likely to see flat volumes and low revenue growth alongside some gross margin expansion.
The stock has gained over 10 per cent in the last month but it could still have an upside, with valuations between Rs 5,200 and Rs 5,700 from several analysts and strong 'buy' consensus.
Softening rural consumption and the likelihood of weak corporate earnings in the March quarter saw investors dump stocks.
In the last two years, a clutch of home-grown fast-moving consumer goods (FMCG) companies sought growth by acquiring companies overseas.
The headline for corporate profit growth has been very encouraging in the July-September quarter (Q2) of 2023-24 (FY24), with the combined net profit of listed companies up by 38 per cent year-on-year. However, the earnings distribution has been very lopsided, with most of the growth coming from public-sector oil-marketing companies (OMCs), banks, non-bank lenders, automobile (auto) companies, and cement producers. By comparison, companies from information technology services, fast-moving consumer goods (FMCG), retail, and consumer durables were disappointed, experiencing a sharp slowdown in net sales growth and a relatively muted increase in reported net profit.
Equity benchmark indices Sensex and Nifty buckled under selling pressure after a nine-session rally on Monday, as massive sell-off in IT, tech and telecom counters unnerved investors.
The first 10 months of this calendar year saw the launch of 251 new products (223 variants and 28 brands) against 191 (173 variants and 18 brands) in the same period last year, according to a study by research firm IMRB.
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