Consumer Sector Q1 Result Preview - Staples Demand Resilient; Some Margin Pressure Evident: Motilal Oswal

Buckets of Asian Paints Ltd. paint at a store in Mumbai. (Photographer: Dhiraj Singh/Bloomberg)

Consumer Sector Q1 Result Preview - Staples Demand Resilient; Some Margin Pressure Evident: Motilal Oswal

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Motilal Oswal Report

We are likely to witness strong cumulative growth numbers in Q1 FY22 of ~19% on the topline, ~23% on Ebitda, and ~25% on PAT for the 18 consumer companies under our coverage.

A large portion of this growth is likely to be the result of the low base – cumulative sales/Ebitda/PAT had collapsed ~17/~29/~23% due to regional lockdowns affecting both the supply chain and manufacturing.

While the second wave impact this year was more pervasive, these critical factors held up well for staples – companies are likely to report revenue growth not just versus Q1 FY21 but Q1 FY20 as well.

In-home consumption, hygiene product sales, the spurt in healthcare products, and (by and large) continued good rural demand are likely to contribute to growth in staples.

Click on the attachment to read the full report:

Motilal Oswal Consumer Sector Results Preview.pdf

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