InvestorQ : Is it true that CRISIL has downgraded the FMCG sector growth and what does that mean for Hindustan Unilever, ITC, Marico and Dabur?
vidhya Laxmi made post

Is it true that CRISIL has downgraded the FMCG sector growth and what does that mean for Hindustan Unilever, ITC, Marico and Dabur?

Answer
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3 months ago


The news may not be too encouraging for the FMCG companies as the top line growth is likely to falter according to CRISIL estimates. CRISIL expects revenues of FMCG companies to de-grow at 2-3% in 2020-21. This is in contrast to the original growth estimate of 10% positive growth. This is largely on account of the huge production disruption caused by COVID-19. However, profits may actually look better due to softer input prices. While FMCG companies are getting to full output, sales are likely to be tepid as COVID-19 has had an impact on jobs and incomes; especially rural demand. This is likely to work as a handicap for the pickup in growth for FMCG companies.