NEW DELHI: Driven by GST reforms, robust festive demand, and softening raw material prices, the FMCG industry expects volume-based growth, supported by a mid-single digit revenue rise and improved operating margins in the December quarter.
After settling down of GST-led disruptions, where distributors and retailers focused on liquidating the existing higher-priced inventory in the channel, the FMCG companies have witnessed signs of recovery, major listed firms informed exchanges in their recent updates on the December quarter.
Moreover, post-trade stabilisation, consumer sentiment improved in urban and rural areas. However, in continuation with the previous trend, rural demand continued to outperform urban demand this quarter as well, FMCG companies like Dabur, Marico, and Godrej Consumer Products Ltd (GCPL) said.
The FMCG industry, which was facing slow consumption, now expects a sustained recovery in demand and improvement in revenue trajectory in the coming quarters.
FMCG companies Dabur, GCPL and Marico reported improving demand and strong revenue growth, aided by easing inflation, lower GST rates and volume gains, while retailers Trent, D-Mart and Titan posted double-digit growth.