Business

FMCG Q2: Margins under pressure

Fast-moving consumer goods companies are experiencing increased commodity costs, alongside the impact of weak monsoons on consumption. Despite these challenges, companies are projecting revenue and volume growth for the quarter. However, analysts expect profitability pressures to continue, which may limit earnings surprises. Selective price hikes have negated some benefits from GST cuts in the domestic market. Overall, the outlook remains cautious as companies monitor inflationary conditions closely.

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