ADVERTISEMENT

Consumer Sector Q3 Earnings Preview - Health, Hygiene Products To Drive The Show: KRChoksey

Consumer Sector Q3 Earnings Preview - Health, Hygiene Products To Drive The Show: KRChoksey

<div class="paragraphs"><p>An employee re-stocks a shelf with beauty products on the personal hygiene aisle inside a supermarket. (Photographer: Angel Navarrete/Bloomberg)</p></div>
An employee re-stocks a shelf with beauty products on the personal hygiene aisle inside a supermarket. (Photographer: Angel Navarrete/Bloomberg)

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.

KRChoksey Research Report

The Indian fast-moving consumer goods industry witnessed a mixed quarter as though urban demand was stable, rural demand got impacted due to high inflation, coupled with the base effect of Q3 FY21, when demand was elevated for the FMCG products.

Some other reasons for the weak rural performance are the erratic monsoon, which has affected the kharif crop (which has a potential impact on farm incomes), and the spread of corona virus. The demand has been slow in the rural areas as the repatriation of funds from urban to rural has not happened.

The FMCG sector is expected to witness double-digit revenue growth, which will be driven by price hikes (in the range of 4-5%), effected across product categories, to offset the impact of the raw material price increase. As the lockdown restrictions eased, the count of active kirana stores increased to ~30%.

Click on the attachment to read the full report:

KRChoksey Consumer Sector Q3FY22 Earnings Preview.pdf

DISCLAIMER

This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.