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Urban slump hits FMCG firms
Hindustan Times
|January 07, 2025
Despite some pockets of resilience in rural markets and price hikes to combat inflation, India's consumer goods companies faced a challenging third quarter.
A delayed winter added to urban demand woes and inflationary pressures, and many consumer goods companies are expected to report low singledigit revenue growth and margin contraction for the October-December period. "The demand slump persisted in Q3FY25 despite festive concentration.
Inflationary stress asks for price hikes that further affect demand.
Expected respite from winter care offerings was also missing, given the delayed and weak winter," said Nitin Gupta, research analyst at Emkay Global Financial Services, in a sector preview report on January 3.
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