FMCG firm Dabur today said the demonetisation of high value currency notes would have beneficial impact on organised players in the segment.
Equity benchmarks recouped losses in afternoon trade with the Nifty climbing above 8100 level, tracking recovery in European peers. FMCG, auto and telecom stocks led the market higher.
"The board of directors of the company at its meeting held on December 5, 2016, has declared third interim dividend of Rs 16 per share for 2016 on the entire issued, subscribed and paid-up share capital of the company," Nestle said in a BSE filing.
FMCG major Procter and Gamble Hygiene and Health Care Ltd (P&G) today reported a 50.14 per cent jump in the net profit to Rs 104.44 crore for the quarter ended September 30, helped by lower expenses.
Sources tell CNBC-TV18 that advertising revenue worth Rs 2,000 crore may be lost on an industry-wide basis. Ad spends on TV was the most hit, while digital platforms proved to be more resilient.
Post demonetisation the market was expecting an earnings growth of 15 percent for this fiscal, which has now been toned down and one can look at mid single digit growth for FY17, says Hemant Kanawala, Head of Equity at Kotak Life Insurance.
Buying continued in equity benchmarks as well as broader markets in noon trade with the Sensex rising nearly 200 points, aided by auto, banking & financials and telecom stocks.
FMCG major Hindustan Unilever Ltd (HUL) today said market growth would be "adversely impacted" in short term due to the ongoing demonetisation scheme of the government and GST but in the long term it would be "win-win for everyone".
Speaking to CNBC-TV18 Prashant Pandey, MD & CEO ENIL said that impact has been severe. The hit on revenues has been around 10 percent, he said. He added that the media industry is expecting a turbulent December.
About 67 percent stores reported that they were facing difficulty in purchasing stock for their stores and 70 percent stores reported that due to cash crunch on both purchase as well as sales side, their business has come down in the last few days, reports Nielsen.
Although the company has cut down ad spends by around 50 percent in November, promotion intensity would continue as normal, said Sunil Duggar, CEO, Dabur.
It has outlined growth in mature and emerging markets as its "key strategic priority", the firm said in its vision 'Henkel 2020+, new strategic priorities and financial ambition for the company'.
In an interview with CNBC-TV18 he said that retails are witnessing around a 20 percent drop in demand which is led by the fact that there is a liquidity constraint in the channel and people are very carefully spending the cash they have in hand.
Market in the short-term can go lower than what we expected earlier as an impact of this demonetisation along with global factors but the medium to long term view still remains positive, says Vibhav Kapoor of IL&FS.
According to an analysis by domestic brokerage firm Motilal Oswal Securities, with low circulation of money, household consumption has taken a hit and caused business across sectors to decline in the range of 30-80 per cent within the first five days of the demonetisation move.
Gautam Duggad of Motilal Oswal India Strategy says against the current backdrop, he expects Q3FY17 earnings to be impacted the most and, thus, the earnings recovery thesis of 2HFY17 is now in jeopardy.
Over the long term, demonetisation will be beneficial for the Indian economy but what it is too early to speculate what impact it will have on the third quarter earnings, says Adi Godrej, Chairman of Godrej Group.
Future Group food and FMCG arm Future Consumer Ltd has formed a 50:50 joint venture with the UK's largest wholesaler, Booker Group, to expand and develop Booker India.
Assam Chief Minister Sarbananda Sonowal laid the foundation stone of the Patanjali Herbal and Mega Food Park at Balipara in Sonitpur district.
In an interview to CNBC-TV18, Deven Choksey, MD of KRChoksey Investment Managers Private Limited shared his readings and outlook on specific stocks and sectors.
Equity benchmarks continued to fall amid consolidation and mixed Asian cues. FMCG stocks rallied after GST panel fixed rates yesterday while pharma stocks were under pressure on reports of US probe in drug pricing.
Varun Lohchab, MD & Head, Research at Religare Capital Markets said that within the consume sector, it seems the new GST rates will be positive for ITC. For other FMCG items, it would depend on what slabs under which goods fall.
The Centre has proposed 4-tier tax structure of 6, 12, 18 and 26 per cent, the peak rate being for FMCG and consumer durables.
Wipro wants to use the momentum derived from acquisition of a Chinese FMCG company to enlarge this footprint and replicate this success in other developing economies in the region.
The acquisition will mark Dabur's entry into the South African personal care market, the company said in a statement.