Consumer Sector Q3 Results Preview- Demand Weakness Continues, Upcoming Quarters To See Improvement: KRChoksey

BQ Prime’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 BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .KRChokey Research Report.The fast moving consumer goods industry has seen volume declines for four consecutive quarters till Q2 FY23, owing to double-digit price hikes over the last six quarters. Q3 FY23E has seen similar market conditions. The quarter is expected to see continued declining/ flat volumes, growth led by pricing, a higher impact on rural demand, and weakness in bottom-of-the-pyramid products and price points. While demand surged during the festive period, there was demand softness in the following months. As per Reserve Bank of India’s monthly bulletins, fmcg sales increased by 12.0% YoY in September 2022 aided by the onset of the festive season. However, the fmcg sales declined by 0.5% / 2.7% YoY in October/ November 2022, respectively. As the inflation continues to decline, there should be some revival in the overall demand trends. The macro challenges continued in Q3 FY23, leading to the continuance of muted rural demand. Factors such as easing inflation, farmers getting money in their hands post the harvest season and continued Government spending is expected to contribute to an improvement in demand..Click on the attachment to read the full report:.Consumer Sector Q3 Results Preview - Demand Tepid, Margins Improve Sequentially: Prabhudas Lilladher.DISCLAIMERThis report is authored by an external party. BQ Prime 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 BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Consumer Sector Q3 Results Preview- Demand Weakness Continues, Upcoming Quarters To See Improvement: KRChoksey

Fmcg companies have seen an improvement in rural demand in the latter half of December 2022.

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