Consumer Sector Q4 Results Preview - Demand Trends Are Yet To See A Major Revival: DRChoksey

NDTV Profit’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 NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..DRChoksey Research Report.Our consumer coverage universe is expected to see a muted revenue growth of 4.2% YoY/ 4.8% QoQ in Q4 FY24E. There has been no material change in the demand environment compared to Q3 FY24 despite a moderation in consumer price index inflation in the quarter.Lower crop yields post a below-normal monsoon have had lingering effects on rural demand. While there have been signs of revival in rural demand, indicated by an uptick in two-wheeler sales, a significant uptick in FMCG sales remains to be seen. The gap between urban and rural growth may continue to narrow gradually. FMCG players will continue to see a growth disparity between premium and mass segments, with premium growing stronger than the bottom end.Topline growth will be led by Varun Beverages Ltd. (+19.1% YoY) due to strong demand and distribution plus capacity expansion, Tata Communications (+16.5% YoY) due to its ‘Growth businesses’ and premiumization in the base business, and Devyani International Ltd. (+10.2% YoY) due to store additions while same-store sales growth will remain weak.Laggards in terms of revenue growth include Adani Wilmar Ltd. (-4.0% YoY) due to a decline in edible oil prices, Hindustan Unilever Ltd. (-2.1% YoY) and Britannia Industries Ltd. (+1.8% YoY) both due to subdued demand and grammage additions/ price cuts. Ebitda margin performance will be a mixed bag, with margins growing by 35 bps YoY (-12 bps QoQ) for the coverage. Ebitda growth for the coverage is expected to be 5.9% YoY/ 4.3% QoQ while net profit growth is expected to be 4.1% YoY/ 3.1% QoQ..Click on the attachment to read the full report:.Consumer Discretionary Q4 Results Preview - Soft; Green Shoots Visible In Value Fashion: HDFC Securities.DISCLAIMERThis report is authored by an external party. NDTV Profit 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 NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Consumer Sector Q4 Results Preview - Demand Trends Are Yet To See A Major Revival: DRChoksey

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