Not just volumes, profit growth takes centre stage for FMCG companies

Most firms have put cost control measures to improve margins, bottom line

Not just volumes, profit growth is also taking precedence for fast moving consumer goods (FMCG) companies, as market recovers from disruptions such as a note ban and a new tax regime. An analysis of numbers over the past five quarters of top consumer goods firms in the BSE 500 list reveals that profit growth was of equal importance.

The last three quarters, that is, the period stretching from October-December 2017 to April-June 2018, shows profit growth has exceeded sales growth by a wide margin (See chart). The difference is 7-9 percentage points as companies benefited in part from benign commodity