Q2 Results Review: Godrej Consumer, ITC, Dabur, Tata Consumer among top analyst picks in the FMCG space

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Also read- IREDA IPO opens today. GMP, price, review, other details. Apply or not? Motilal Oswal Financial Services also said that large manufacturers as Hindustan Unilever Ltd, Britannia Industries Ltd and ITC Ltd reported low single-digit revenue growth, and muted volume growth due to intensified competition from smaller players.

Overall sales growth was largely in line for 15 out of 19 companies; however as per Motilal Oswal Securities, there were a few notable misses as well (Asian Paints, Procter & Gamble Health Ltd and Procter & Gamble Ltd). With muted volume growth the sales growth, however, has taken a toll. Companies within coverage universe of Motilal Oswal Financial Services reported muted sales growth of 4.4% YoY versus estimate of 6.3% in 2QFY24 on a cumulative basis.

Analysts at Nomura Research also stated that staples value growth moderated down to .5% in 2Q24 versus average growth of 10-11% in the past eight quarters due to lesser contribution from pricing-led growth and a slower recovery in volume growth. The Softness in input costs however led to improvement in operating margins. The majority of companies within our industry have returned to historical levels of advertising and promotion (A&P) spending to remain competitive in the market, while a few have introduced new product launches, said analysts at Motilal Oswal Financial Services.