Consumer goods firms show recovery in Q2

Supply chain normalisation to take time; analysts hope H2 of FY18 to be better

The September quarter of the financial year 2017-18 appears to have brought some relief to consumer product companies reeling under a slowdown. The results of key firms show volume growth is coming back as they tide over trade challenges emanating from the implementation of the goods and services tax (GST) regime.

While supply chain normalisation will take time, analysts say the second half of FY18 will be better than the first. “Issues pertaining to the transition of trade to the GST will settle over the next two quarters. At the same time, there should be some recovery in sentiment,” said Abneesh