Q4 expectations: Price hikes may help FMCG firms report higher sales

Volumes to remain under pressure as rural demand continues to be weak

Fast-moving consumer goods (FMCG) companies are expected to report strong revenue growth. This is largely on the back of price hikes by companies in the January-March quarter owing to higher commodity costs.

Discretionary spends improved compared to staples in the quarter, but Omicron did have an impact.

Rural demand continued to remain a concern for FMCG companies during the quarter. The slowdown in rural demand began at the end of the second quarter and continues to remain a cause for concern.

Motilal Oswal, in its preview note on the sector, said that inflation has been the theme in the quarter ended March 31,