Citibank analyst Vismaya Agarwal said in a report that Indian consumer goods companies may have recorded month-on-month growth in the October-December quarter. He said that this was due to sharp price cuts in various product categories after India lowered the goods and services tax, as well as a partial recovery after inventory removal in September-October. He expects that the profit margins before interest, taxes, depreciation, and amortization of the companies he covers will remain unchanged year over year, compared to a decline in previous quarters as the costs of various commodities are falling. He added: “We will be watching to see if the recovery in demand continues in the medium term. “He is more optimistic about food and non-alcoholic beverage companies than the family and personal care sub-sector. Industry preferred stocks include Britannia Industries, Godrej Consumer Products, and Varun Beverages.

Citibank analyst Vismaya Agarwal said in a report that Indian consumer goods companies may have recorded month-on-month growth in the October-December quarter. He said that this was due to sharp price cuts in various product categories after India lowered the goods and services tax, as well as a partial recovery after inventory removal in September-October. He expects that the profit margins before interest, taxes, depreciation, and amortization of the companies he covers will remain unchanged year over year, compared to a decline in previous quarters as the costs of various commodities are falling. He added: “We will be watching to see if the recovery in demand continues in the medium term. “He is more optimistic about food and non-alcoholic beverage companies than the family and personal care sub-sector. Industry preferred stocks include Britannia Industries, Godrej Consumer Products, and Varun Beverages.