All eyes on rural recovery and volume growth in FMCG post Q1 results

Second half of the year will be closely watched, say brokerages

Following the first-quarter results of fast-moving consumer goods (FMCG) firms, all eyes are now on rural recovery and volume growth. In their commentary after the 2023-24 April-June quarter results, FMCG companies have discussed signs of recovery in rural demand, which was impacted for over a year due to inflation.

Brokerages are pointing out that the second half of the year will be closely watched.

“Easing inflation, higher government spending, and increased urban remittances will define future growth momentum in rural regions. However, the impact of El Niño needs to be keenly watched,” stated Axis Securities in its report.

Broking firm