One year of demonetisation: Firms out of cash crunch shadow

Consumer goods: July-Sept profit growth highest in 3 quarters but lower than in pre-demonetisation period

Consumer goods makers have recovered lost ground since the cash crunch that followed the government’s decision to demonetise Rs 500 and Rs 1,000 currency notes on November 8, 2016. However, the industry is yet to get back its mojo.

The combined net profits of consumer goods companies were up 8.4 per cent, year-on-year, during the September quarter, growing most in the last three quarters. But this much slower than the rates the industry was clocking before the note ban. The industry’s net profit had grown at an average 21 per cent, year-on-year, during the eight quarters preceding November 8, 2016.

Combined net