Margins, however, are likely to remain under pressure for staples companies, brokerage Edelweiss said in a report on the consumer goods sector on Wednesday. The results will give a peek into the impact of the second wave on consumer demand and business. While the impact on supply chain was limited during the second wave when compared last year, rural India took a hit this time around. Year-on-year growth will still look good for most companies given wave two did not entail hard lockdowns," the brokerage said in its report. The brokerage expects rural growth revival for FMCG companies on the back of a good monsoon and government sops.

Source: Mint July 07, 2021 05:37 UTC