FMCG - Healthy revenue performance to aid earnings growth - Angel Broking

During the quarter, we expect our coverage FMCG universe to report a 13.8% yoy earnings growth, led by healthy performance on the top-line front. We expect our FMCG universe (excluding ITC) to post a top-line growth of 11.4% yoy during the quarter aided by both higher volumes and better realizations. Overall, we expect a mixed performance on the operating front as higher raw material prices are expected to result in a decline in gross margins for some of our coverage FMCG companies. Also, advertising and sales promotion expenses continue to remain at elevated level, which along with higher freight costs are expected to impact margin performance.

Source : Equity Bulls

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