Deflating commodity costs to aid FMCG firms in H2FY23: Analysts

With commodity prices deflating from their March peak levels, analysts expect the margin profile across consumer goods companies to improve going ahead.

Higher food inflation, sluggish demand, and weak macro environment skewed purchasing power among consumers in the April-June quarter of FY23 (Q1FY23). All this impacted the fortunes of consumer goods companies, said analysts, who expect the second half of fiscal FY23 (H2FY23) to be better as commodity prices cool off. That apart, they expect a gradual pick-up in demand.

At the bourses, the Nifty FMCG index has outperformed with a gain of over 18 per cent thus far in FY23. In comparison, frontline indices like Nifty50 and the S&P BSE Sensex have gained over 1 per cent each, during the same