FMCG companies are likely to see a significant hit in the Jun-20 quarter due to the impact of COVID-19 enforced lockdown. That has hit the supply chain, availability of labour, operation of stores as well as their manufacturing capacity. In fact, the street estimate for FMCG is a 20.5% fall in sales, 30.5% fall in EBITDA and 20% fall in PAT in the first quarter.

A slew of FMCG companies will be announcing their quarterly results for the Jun-20 quarter and some of the FMCG results expected in the month of July are Britannia, ITC, Marico, Nestle and Dabur. The lockdown in key cities will last all the way to July 31. Hence, some players are likely to benefit from higher usage of hygiene and healthcare products.

Broadly, the staples were less impacted but the situation with durables is still not known. However, this will all depend on whether the situation on the COVID front improves or worsens over the next few weeks. Food companies have been less hit so Britannia and Nestle may be beneficiaries. A key challenge is the unavailability of skilled workers.