Latest news with #NiftyFMCG
Time of India
2 days ago
- Business
- Time of India
Rising costs, muted demand to weigh on FMCG margins in Q1
FMCG companies anticipate a slight sales volume increase for the June quarter, with revenue growth varying due to pricing strategies and demand. While some firms may face margin pressure from rising material costs and advertising, Marico and Tata Consumer Products are favored by analysts. The Nifty FMCG index has recently outperformed broader market indices. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads ET Intelligence Group: Select companies in the fast moving consumer goods (FMCG) sector are expected to show marginal pickup in sales volume for the June quarter. Revenue growth will likely be driven by higher prices for some firms while others may report pressure due to weak demand. Margins may contract due to higher material costs and increased advertising spend for some companies. Marico and Tata Consumer Products are top picks of most sector major, Hindustan Unilever 's volume growth is expected to revive to 3% for the June 2025 quarter given gradual recovery in demand. After clocking a 4% improvement in the year-ago quarter, volume growth fell in each of the following quarters to 2% in the March 2025 quarter. Operating profit may remain flat while margins are likely to contract by 1% due to rise in advertising and promotion costs to boost cigarettes-to-paperboards maker, ITC is expected to sustain the year-on-year cigarette volume growth at the March quarter level of 5%. Paperboard growth is expected to remain weak due to sluggish export markets, weaker realisations and cheap Chinese supplies. Margins are expected to decline in both the categories due to surge in raw material costs. On the other hand, agri-business growth is expected to be in double-digit at around 10%. Nestle India is likely to deliver a 6% year-on-year growth in revenue, supported by about 6.5-7% rise in sales volume and price increase. However, inflation in coffee, cocoa, milk and edible oils could add pressure on the margin front. Varun Beverages (VBL), a major bottler of PepsiCo, may report flat revenue due to decline in volumes amid early onset of the monsoon season. According to Motilal Oswal Financial Services (MOFSL), the operating margin before depreciation and amortisation (Ebitda margin) may contract by 150 basis points. Britannia Industries is likely to clock volume growth of 3-4% while price increase implemented in the June 2025 quarter may drive revenue up by 9%. High agricultural commodity costs are likely to weigh on margins, though profit may rise by around 9% due to higher product of Tata Consumer Products is expected to rise 11%, supported by growth in the domestic tea business. Salt segment is also expected to be driven by higher volumes and price increase. Marico 's revenue may jump around 22% driven by 8-9% volume growth in the domestic market and higher product prices. On the contrary, margins are expected to contract by 330 bps points due to copra inflation and higher stocks outperformed the frontline indices in the past month where the Nifty FMCG index jumped 3.6% compared with around 1% rise in the benchmark Nifty 50 and BSE Sensex indices.
Economic Times
2 days ago
- Business
- Economic Times
Rising costs, muted demand to weigh on FMCG margins in Q1
Agencies Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel ET Intelligence Group: Select companies in the fast moving consumer goods (FMCG) sector are expected to show marginal pickup in sales volume for the June quarter. Revenue growth will likely be driven by higher prices for some firms while others may report pressure due to weak demand. Margins may contract due to higher material costs and increased advertising spend for some companies. Marico and Tata Consumer Products are top picks of most sector major, Hindustan Unilever 's volume growth is expected to revive to 3% for the June 2025 quarter given gradual recovery in demand. After clocking a 4% improvement in the year-ago quarter, volume growth fell in each of the following quarters to 2% in the March 2025 quarter. Operating profit may remain flat while margins are likely to contract by 1% due to rise in advertising and promotion costs to boost cigarettes-to-paperboards maker, ITC is expected to sustain the year-on-year cigarette volume growth at the March quarter level of 5%. Paperboard growth is expected to remain weak due to sluggish export markets, weaker realisations and cheap Chinese supplies. Margins are expected to decline in both the categories due to surge in raw material costs. On the other hand, agri-business growth is expected to be in double-digit at around 10%. Nestle India is likely to deliver a 6% year-on-year growth in revenue, supported by about 6.5-7% rise in sales volume and price increase. However, inflation in coffee, cocoa, milk and edible oils could add pressure on the margin front. Varun Beverages (VBL), a major bottler of PepsiCo, may report flat revenue due to decline in volumes amid early onset of the monsoon season. According to Motilal Oswal Financial Services (MOFSL), the operating margin before depreciation and amortisation (Ebitda margin) may contract by 150 basis points. Britannia Industries is likely to clock volume growth of 3-4% while price increase implemented in the June 2025 quarter may drive revenue up by 9%. High agricultural commodity costs are likely to weigh on margins, though profit may rise by around 9% due to higher product of Tata Consumer Products is expected to rise 11%, supported by growth in the domestic tea business. Salt segment is also expected to be driven by higher volumes and price increase. Marico's revenue may jump around 22% driven by 8-9% volume growth in the domestic market and higher product prices. On the contrary, margins are expected to contract by 330 bps points due to copra inflation and higher stocks outperformed the frontline indices in the past month where the Nifty FMCG index jumped 3.6% compared with around 1% rise in the benchmark Nifty 50 and BSE Sensex indices.
Business Standard
4 days ago
- Business
- Business Standard
Varun Beverages Ltd soars 1.45%, Gains for third straight session
Varun Beverages Ltd is quoting at Rs 476.6, up 1.45% on the day as on 12:49 IST on the NSE. The stock is down 25.09% in last one year as compared to a 1.69% gain in NIFTY and a 7.48% gain in the Nifty FMCG index. Varun Beverages Ltd is up for a third straight session in a row. The stock is quoting at Rs 476.6, up 1.45% on the day as on 12:49 IST on the NSE. The benchmark NIFTY is up around 0.09% on the day, quoting at 25218.75. The Sensex is at 82666.87, up 0.12%. Varun Beverages Ltd has added around 1.33% in last one month. Meanwhile, Nifty FMCG index of which Varun Beverages Ltd is a constituent, has added around 3.55% in last one month and is currently quoting at 56429.05, up 0.39% on the day. The volume in the stock stood at 55.94 lakh shares today, compared to the daily average of 79.45 lakh shares in last one month. The benchmark July futures contract for the stock is quoting at Rs 478.7, up 1.68% on the day. Varun Beverages Ltd is down 25.09% in last one year as compared to a 1.69% gain in NIFTY and a 7.48% gain in the Nifty FMCG index. The PE of the stock is 62.79 based on TTM earnings ending March 25.
Business Standard
5 days ago
- Business
- Business Standard
Patanjali Foods Ltd soars 2.37%, rises for fifth straight session
Patanjali Foods Ltd is quoting at Rs 1713.3, up 2.37% on the day as on 12:44 IST on the NSE. The stock is up 9.89% in last one year as compared to a 2.45% spurt in NIFTY and a 7.08% spurt in the Nifty FMCG. Patanjali Foods Ltd is up for a fifth straight session in a row. The stock is quoting at Rs 1713.3, up 2.37% on the day as on 12:44 IST on the NSE. The benchmark NIFTY is up around 0.53% on the day, quoting at 25215.7. The Sensex is at 82655.58, up 0.49%. Patanjali Foods Ltd has risen around 1.98% in last one month. Meanwhile, Nifty FMCG index of which Patanjali Foods Ltd is a constituent, has risen around 2.69% in last one month and is currently quoting at 56025.6, up 0.58% on the day. The volume in the stock stood at 8.21 lakh shares today, compared to the daily average of 10.1 lakh shares in last one month. The benchmark July futures contract for the stock is quoting at Rs 1717, up 2.47% on the day. Patanjali Foods Ltd is up 9.89% in last one year as compared to a 2.45% spurt in NIFTY and a 7.08% spurt in the Nifty FMCG index. The PE of the stock is 46.67 based on TTM earnings ending March 25.
Business Standard
6 days ago
- Business
- Business Standard
Tata Consumer Products Ltd down for fifth straight session
Tata Consumer Products Ltd is quoting at Rs 1073.7, down 0.29% on the day as on 13:19 IST on the NSE. The stock tumbled 5.38% in last one year as compared to a 1.83% rally in NIFTY and a 6.71% fall in the Nifty FMCG index. Tata Consumer Products Ltd is down for a fifth straight session today. The stock is quoting at Rs 1073.7, down 0.29% on the day as on 13:19 IST on the NSE. The benchmark NIFTY is down around 0.45% on the day, quoting at 25036.9. The Sensex is at 82130.42, down 0.45%.Tata Consumer Products Ltd has lost around 0.9% in last one Nifty FMCG index of which Tata Consumer Products Ltd is a constituent, has increased around 2.12% in last one month and is currently quoting at 55910.25, up 0.23% on the day. The volume in the stock stood at 4.88 lakh shares today, compared to the daily average of 11.12 lakh shares in last one month. The benchmark July futures contract for the stock is quoting at Rs 1076.6, down 0.41% on the day. Tata Consumer Products Ltd tumbled 5.38% in last one year as compared to a 1.83% rally in NIFTY and a 6.71% fall in the Nifty FMCG index. The PE of the stock is 89.07 based on TTM earnings ending March 25.
