FMCG Earnings Preview - Discretionary Segment, Healthy Rural Growth To Drive Q4 Performance: Axis Securities  
Pulses are displayed for sale in front of packaged goods at a local grocery store in the Kalahati market area in Siliguri, West Bengal, India. (Photographer Sanjit Das/Bloomberg)

FMCG Earnings Preview - Discretionary Segment, Healthy Rural Growth To Drive Q4 Performance: Axis Securities  

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.

We expect most consumer staple and paint companies under our coverage to report healthy revenue growth of ~25% YoY led by:

  1. Consumers’ sustaining focus on health and hygiene segment in Q4 driven by a preference to necessities as well as trusted brands. In-home consumption trend on a YoY basis shall bode well for packaged food companies. However, on a QoQ basis, it has tapered down as lockdown restrictions eased;

  2. Favorable base and strong recovery of higher-margin discretionary products;

  3. Rural market outpacing urban counterpart aided by favorable agri outlook and government schemes;

  4. Normalization of supply chains and distribution network in the backdrop of progressive relaxations in the lockdown rules in Q4.

Click on the attachment to read the full report:

Axis Securities FMCG Retail Q4FY21-Earnings Preview.pdf

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