However, most of them have been able to pass on the higher cost of raw materials through price hikes so the average top line growth should be in the region of 14-15 per cent. Colgate, for instance, has increased prices of sachets by 3-4 per cent while Dabur has upped prices of hair oil, chawyanprash and toothpaste by 4 per cent and shampoos by 7 per cent. Nonetheless, it might not be enough for them to protect operating margins which could see a slight fall.
The Rs 13,717 crore Hindustan Unilever is belived to have reduced pack sizes and raised prices of some brands of soaps, detergents and personal products by 6 to 12 per cent.
Thus, revenues should rise by about 16-17 per cent though margins could stay flat at around the 14.7 per cent levels seen in Q2CY07. The Rs 13,947 crore ITC's revenues are tipped to grow by about 10-12 per cent despite an expected fall in sales of non-filter cigarettes, which contribute 10 per cent of total volumes. Operating margins for the company could see a slight fall from the high level of nearly 34 per cent in Q1FY08, given the continuing losses in the FMCG segment.
Foods major, the Rs 3,504 crore Nestle, the star of the March quarter, is likely to turn in a sales growth of around 20 per cent y-o-y driven by noodles and chocolates. The firm's strong brands, for which there are few substitutes, limits downtrading in categories such as infant nutrition, coffee and dairy products.
Despite rising milk and wheat prices, operating margins for Nestle could increase though probably not by the 220 basis points rise that it saw in March. Revenues for the Rs 2,361 croreDabur should grow in double digits though margins could stay flat at around 16.5 levels. The Rs 1,473 crore Colgate should register a top line growth of around 14 per cent but operating margins could drop due to a high base effect and higher advertising and brand building expenses.
Higher prices of copra-up by about 20 per cent