FMCG cos cut costs amid tepid demand

No so fast-moving Cost-control measures emerged as a crucial buffer amid lacklustre performance of FMCG firms in Q4

- Manjul Paul

Tepid consumer demand continued to weigh on fast-moving consumer goods (FMCG) companies' revenue growth in the March quarter, extending a streak of sluggish topline expansion.

Yet, behind this lackluster revenue performance, cost control measures emerged as a crucial buffer, stabilizing profits and preventing deeper erosion.

A Mint analysis of 19 FMCG firms shows that aggregate year-on-year revenue growth remained stagnant at 6.1% in Q4, marginally down from 6.6% in the preceding December quarter.

In stark contrast, net profits surged dramatically from 12.1% year-on-year growth in Q3FY25 to an impressive 31% in Q4FY25, underscoring the widening divergence between these key performance metrics.