Dampened Q2 For FMCG Firms, HUL Outlier Expected

The fast-moving consumer goods industry’s price-led revenue growth is likely to continue in this fiscal’s second quarter. This is due to rural consumption continuing to be sluggish due to inflationary pressures.

About 45-50 per cent is what the rural markets account for, and this sector has seen a slowdown in the previous few quarters due to spiraling prices. Industry experts predict that the consumer staples companies would be reporting a 12-22 per cent year-on-year growth, primarily due to the price hikes.

Hindustan Unilever has likely taken about 14 per cent hike, which is the highest among peers, as per Edelweiss Securities. HUL’s volume growth is predicted to be the highest among peers. Analysts predict about 4-6 per cent growth in volumes for HUL, over a base of 9 per cent growth for the same period in the previous year.

Firms like Marico, Colgate Palmolive India, and Emami are predicted to be reporting a 2-3 per cent in volumes for the quarter.