The Nifty FMCG index, which tracks the share prices of the country's top 15 listed FMCG companies, is up 1.9 per cent month-to-date in May compared to a 2.4 per cent decline in the benchmark Nifty 50 in the period.
In contrast, the Nifty FMCG index had declined 4.8 per cent in the first four months of 2024 calendar year against a 4 per cent rally in Nifty 50 in the period.
A reversal in the fortunes of FMCG companies is, however, yet to reflect in their financial performance.
The FMCG companies that have declared their results for JanuaryMarch 2024 (Q4FY24) continue to lag the rest of India Inc in terms of revenue and profit growth. As a result, the sector's contribution to revenue and profit declined to at least a five-year low in Q4FY24.
The 19 listed FMCG companies in the Business Standard sample accounted for just 3.2 per cent of corporate profits (adjusted for exceptional gains and losses) in Q4FY24, down from the 3.8 per cent in Q3FY24 and the pre-pandemic share of 6.3 per cent.
This story is from the May 11, 2024 edition of Business Standard.
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This story is from the May 11, 2024 edition of Business Standard.
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