FMCG revenue growth likely to accelerate on low base, healthy demand

Commodity inflation remains area of concern, say firms

Fast-moving consumer goods (FMCG) companies expect to deliver strong revenue and volume growth numbers for the quarter ended March 31, 2021 (Q4), driven by a low base and healthy demand trends across categories.

However, commodity inflation remains a concern, updates by firms in the last one week indicate.

Marico, Godrej Consumer (GCPL) and Titan have all released their quarterly updates for Q4, saying they expect strong double-digit volume and revenue growth for the period. But operating margins are expected to fall significantly due to input cost pressures, hitting bottomline growth.

"We expect to deliver low double-digit bottomline growth in Q4, as operating margins