FMCG, Alco Bev Q3 Results Preview - Unchanged Demand Trend, Some Respite In Margins: HDFC Securities

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. .HDFC Securities Institutional Equities.Our fast moving consumer goods coverage universe is expected to deliver growth of 9/11% on YoY/three-year compound annual growth rate in revenue in Q3 FY23 (versus 17/10% in Q3 FY22 and 8/11% in Q2 FY23). Rural demand remained tepid while some green shoots were visible at the end of the quarter. Urban demand too was not different from that seen in Q2. Thus, we do not expect volume CAGRs of companies to show any meaningful difference from those in Q2. Packaged food is expected to sustain strong growth, primarily led by price hike (volume side should be similar). Winter portfolio could not see enough pick-up due to a delayed winter; skin care portfolio, hence, could see some pressure. Other discretionary consumption like quick service restaurant was also weak (particularly after the festive season). Cigarette is sustaining a similar CAGR; reported numbers will still be better than underlying. Most international geographies (excluding Indonesia) continued their growth momentum..Click on the attachment to read the full report:.More Research Reports On FMCG Q3 FY23 Earnings Preview.Demand Slowdown Will Weigh On Topline: Axis SecuritiesInflationary Pressures Easing; Rural Yet To Pick Up Pace: Nirmal Bang Slow Pace Of Earnings Recovery In Staples: Motilal Oswal.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.

FMCG, Alco Bev Q3 Results Preview - Unchanged Demand Trend, Some Respite In Margins: HDFC Securities

We maintain our view that demand will improve gradually, instead of the general expectation of a quick bounce-back.

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