FMCG, Alco Bev, QSR Q4 Results Preview - Challenging Demand Environment: HDFC Securities

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..HDFC Securities Institutional Equities.We continue to expect a gradual recovery in fast moving consumer goods demand versus the expectation of a quick rebound, more so in rural markets, as high inflation has dented the net income level of bottom-of-the-pyramid consumption. Moreover, we expect divergence between volume and value growth to normalise with volume growth back at its historical average of mid-single digit. Easing commodity inflation will help sustain gross margin expansion. With price cuts and higher consumer promotions, GM expansion will be slower in the coming quarters. Companies are also reinvesting some of these gains in product innovation, distribution expansion, and marketing spending, which shall limit operating margin expansion. Within quick service restaurant, although we believe the industry has multi-year growth potential, given India’s rising consumer base, eating-out frequency, quicker delivery and value-for-money proposition. However, given that high inflation is impacting consumer wallets, we have been highlighting that the slowdown is not transient and we expect a delayed recovery. Moreover, the pressure on the operating margin has been significant..Click on the attachment to read the full report:.Life Insurance Q4 Results Preview - Margin Softness To Persist: DRChoksey.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

FMCG, Alco Bev, QSR Q4 Results Preview - Challenging Demand Environment: HDFC Securities

FMCG to report stable margin print; QSR margins to remain under pressure

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FMCG, Alco Bev, QSR Q4 Results Preview - Challenging Demand Environment: HDFC Securities

FMCG to report stable margin print; QSR margins to remain under pressure

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