Indian consumer goods slide; Q2 outlook remains bleak

Procter & Gamble Hygiene and Health Care

17/10/2024 09:52

** India's fast moving consumer stocks  .NIFTYFMCG  fall as
much as 1.7%, the biggest drop in over two months
    ** All 15 stocks on the index in red
    ** Heavyweight Nestle India  NEST.NS  dropped the most,
sliding ~4%, while Proctor & Gamble Hygiene and Health Care
 PROC.NS  saw the smallest drop, easing 0.5% 
    ** NEST, first to report results among consumer goods,
posted ~9% fall in Q2 profit, hurt by high ingredient prices and
weak demand for its packaged food
    ** HDFC Securities says FMCG's demand environment has not
seen any meaningful improvement due to subdued macro environment
    ** Adds vol growth muted on increased competitive intensity;
inflationary pressure will continue to drag margins down in Q2
    ** Analysts, however, expect above-average monsoon to
improve demand in H2 of FY25
    ** YTD, NIFTYFMCG up ~8% vs benchmark Nifty 50 index's
 .NSEI  ~14% gain

 (Reporting by Ashna Teresa Britto in Bengaluru)
 ((AshnaTeresa.Britto@thomsonreuters.com ; ( +91 8078332441))