Consumer Sector Q4 Results Preview: No Uptrend In Demand; Margin Pressure To Sustain — Motilal Oswal

While slowdown continued across consumer segments, demand trends are expected to improve gradually, supported by income tax benefits, interest rate cuts, and a gradual improvement in the macro environment. Among Motilal Oswal's coverage companies, Marico, United Spirits, Jubilant FoodWorks, Page Industries, and Kalyan Jewellers are expected to be outliers in Q4 FY25, whereas Dabur, Asian Paints, Indigo Paints, and Devyani/Sapphire will likely be the underperformers..NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Motilal Oswal Report.In Q4 FY25, demand trends across various categories remained stable. Staple companies are likely to experience a similar subdued quarter due to sluggish urban demand and high palm oil prices impacting the personal-wash portfolio (grammage reduction). We have seen no material pickup in volume growth, and expect revenue growth to remain in low to mid-single digit. While companies have taken pricing actions to counter raw material inflation, revenue growth is expected to see improvement vs. witnessed in Q3 FY25. Paint companies are still struggling with a lack of demand recovery and increased competition. However, some improvement is expected in the price and product mix, as the 3-4% price cuts implemented last year have now been into the base. Additionally, companies have implemented a ~2% price hike in YTD FY25, which should support realizations. Alcoholic beverage companies performed better, with United Spirit Ltd.'s P&A portfolio benefiting from premiumization and policy changes in Andhra Pradesh. United Breweries Ltd. is also likely to deliver high single-digit revenue growth, driven by an improved state mix, a price hike in Telangana (mid-February), and ongoing premiumization. Innerwear companies are expected to see high single-digit growth due to summer inventory buildup and favorable base effects, although weak urban demand remains a challenge. The pressure from high trade inventory has eased, and primary growth is expected to align with secondary growth. QSR companies saw a minor improvement in demand in Q4, with volume-led same-store sales growth showing improvement. With a favorable base, SSSG is expected to continue improving in Q4 and beyond. The revenue gap between dine-in and delivery is expected to narrow as the dine-in footfall improves. Jewelry demand has moderated due to a sharp rise in gold prices, impacting sales in Feb-25 and Mar-25 after a healthy Jan-25..Click on the attachment to read the full report:.IT Services, Internet, Software, KPO Q4 Results Preview: Weakening Macro To Curb Growth — Dolat Capital.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Consumer Sector Q4 Results Preview: No Uptrend In Demand; Margin Pressure To Sustain — Motilal Oswal

Consumer Q4 Results Preview: HUL, Godrej Consumer Products, Marico and Page Industries remain Motilal Oswal top picks in the sector.

NDTV Profit

NDTV Profit

Follow Us

DOWNLOAD THE APP

Consumer Sector Q4 Results Preview: No Uptrend In Demand; Margin Pressure To Sustain — Motilal Oswal

Consumer Q4 Results Preview: HUL, Godrej Consumer Products, Marico and Page Industries remain Motilal Oswal top picks in the sector.

Choose a plan

Follow Us

DOWNLOAD THE APP