Tag FMCG

Hindustan Unilever Ltd
Hindustan Unilever: Declines for Fifth Straight Session – Market Trends & Investment Outlook

Business and Industry Overview

Hindustan Unilever Limited (HUL) is one of India’s biggest companies. It makes everyday products like soaps, shampoos, and food items. HUL is a part of Unilever, a global company. It sells many well-known brands. Some of them are Lifebuoy, Dove, Lux, Surf Excel, Rin, and Pepsodent. It also makes food and drinks like Lipton tea, Knorr soups, and Kissan ketchup. It makes products in India and sells them across the country. It reaches both cities and villages. It sells through shops, supermarkets, and online stores. HUL is a market leader in the fast-moving consumer goods (FMCG) industry. It competes with other companies like ITC, Nestlé, and Procter & Gamble. It makes profits by keeping costs low and selling in large numbers. HUL is working on being more eco-friendly. It is reducing plastic waste and using less water in making products. HUL is a strong and trusted company in India. It makes products that people use daily. It continues to grow by reaching more customers and improving its products. 

Hindustan Unilever Limited (HUL) is a big company in India that makes everyday products. It has three main business areas: Home Care, Beauty & Personal Care, and Foods & Refreshments. In Home Care, it sells washing powders like Surf Excel, Rin, and Wheel, and cleaners like Vim and Domex. In Beauty & Personal Care, it offers soaps like Lux and Lifebuoy, shampoos like Sunsilk and Clinic Plus, creams like Pond’s and Lakmé, and toothpaste like Pepsodent and Closeup. In Foods & Refreshments, it sells tea like Brooke Bond, coffee like Bru, health drinks like Horlicks and Boost, and ice cream like Kwality Wall’s. HUL sells its products in shops, supermarkets, and online. It also works on eco-friendly and social projects.  

CRISIL forecasts 7-9% revenue growth for the FMCG sector in the current FY25, driven by increased volume and rural demand recovery. The Fast-moving consumer Goods (FMCG) sector is India’s fourth-largest sector and has been expanding at a healthy rate over the years because of rising disposable income, a rising youth population, and rising brand awareness among consumers. With household and personal care products accounting for 50% of FMCG sales in India, the industry is an important contributor to India’s GDP. HUL is one of the largest companies in the FMCG industry in India, with 30.35% of the market share.  

Latest Stock News

Hindustan Unilever Ltd. (HUL) shares have been falling recently. On Tuesday, the stock dropped by 1.8% to ₹2,138.8, its lowest price in the past year. In the last five trading days, it has fallen by nearly 5%, and in the past month, it has lost about 12%. This decline happened because the overall stock market has been weak, affecting even stable sectors like FMCG (Fast-Moving Consumer Goods).   

On Monday, HUL’s stock price closed at ₹2,176.95, down by 0.68%. The BSE SENSEX index, which tracks the overall market, also fell by 0.15%. HUL’s stock is currently 28.26% lower than its highest price in the past year (₹3,034.50), which it reached on September 23.   

Compared to some of its competitors on Monday, HUL had mixed performance. Jyothy Laboratories fell by 2.23%, Procter & Gamble Hygiene & Health Care dropped 0.51%, and Godrej Consumer Products lost 0.68%.   

The trading volume for HUL was 153,148 shares, which is much higher than its 50-day average of 77,407 shares. This means more people were buying and selling the stock than usual. 

Potentials

Hindustan Unilever Ltd. (HUL) has big plans for the future. It wants to grow by using digital tools, focusing on sustainability, and making better products. HUL is using technology to understand customers, improve sales, and deliver products faster.  The company is working to protect the environment. It plans to use solar energy, save water, and reduce plastic waste. HUL also wants to make more beauty and food products. It is offering premium and healthier options for customers.  HUL is improving its factories with new machines and smart technology. This will help make products faster and reduce waste. The company is also helping rural women start small businesses through its “Shakti” program.  HUL is changing to meet the needs of modern India. It is using data to make smart decisions and adding sustainability to all parts of its business. By 2039, HUL wants to have zero pollution and be fully eco-friendly. 

Analyst Insights

  • Market capitalization:₹ 5,05,068 Cr. 
  • Current Price: ₹ 2,150 
  • 52-Week High/Low:₹ 3,035 / 2,137 
  • P/E Ratio:48.7 
  • Dividend Yield: 1.96 % 
  • Return on Capital Employed (ROCE): 27.2 % 
  • Return on Equity (ROE): 20.2 % 

Hindustan Unilever Ltd. (HUL) is a strong and stable company with almost no debt and high profits, making it a good long-term investment. It pays high dividends, meaning investors regularly earn returns. However, the stock is expensive compared to its actual value, and its sales growth has been slow over the past five years. The stock price is also near its lowest point in the last year, showing weak demand. Because of this, holding the stock is best. If you already own it, keep it, but if you are a new investor, wait for a better price before buying. 

Godrej Industries Ltd
Godrej Industries Stock Surges 41% in a Year- Is It a Smart Investment in 2024?

Business and Industry Overview: 

Godrej Industries Group (GIG) is an Indian conglomerate founded in 1897 by Ardeshir Godrej. It has a long history of innovation and social impact. The company supported India’s freedom movement and created the world’s first vegetable oil-based soap in 1918. It also made ballot boxes for India’s first election in 1951. Today, GIG earns $6.1 billion in revenue and has a $27.5 billion market value (as of March 31, 2024). It serves over 1.1 billion people worldwide. The company operates in many industries, but these are the main streams of revenue:  

  • Consumer Products—It is a leader in home and personal care across Asia, Africa, and Latin America. Its products include home care, Air fresheners, fabric Care, and personal care products like shampoo and hair color.   
  • Real Estate – It is one of India’s top developers, known for sustainability and innovation. The company is into real estate. In 9MFY24, it added 1 group housing project in Bengaluru with an estimated booking value of ₹ 1,250 crores.  
  • Agriculture – It helps farmers with animal feed, palm oil, and other solutions. This includes animal feed, vegetable oil, dairy, and crop protection business. 
  • Chemicals –  It is a major producer of oleochemicals and speciality chemicals. This includes Fatty Alcohols, Surfactants, Glycerin, and Fatty Acids. 
  • Finance & Investments – It includes real estate private equity and a growing financial services business. 

Godrej Industries is one of the holding companies of the Godrej Group. It is one of the leading manufacturers of oleochemicals on a standalone basis. Godrej Industries is the promoter of Godrej Agrovet Ltd. and Godrej Properties Ltd. It also has a stake in Godrej Consumer Products Ltd. The company focuses on sustainability and social responsibility. Godrej Good & Green works on environmental and community projects. Godrej DEI Lab promotes diversity and inclusion in the workplace. With a strong legacy and focus on the future, Godrej continues to grow while making a positive impact. 

Latest Stock News: 

  • Stock Performance: On February 21, Godrej Industries saw a massive surge in trading volume, reaching 176.85 lakh shares, 17.25 times the two-week average. The stock rose 9.39% to ₹1,106.75 but ended at ₹812.10, down 3.08% on BSE. 
  • Recent Gains & Valuation: The stock jumped 29% last month and 41% over the year, but its high P/E ratio of 78.5x raises concerns, especially with a 28% drop in earnings last year. While EPS grew 18% over three years, it lags behind the market’s expected 25% growth. 
  • Financial Performance: In Q3FY24, revenue surged 34.4% YoY to ₹4,824.8 crore, while net profit soared 76.9% YoY to ₹188.2 crore. EBITDA more than doubled, rising 113.75% YoY to ₹596.8 crore, with margins improving from 7.8% to 12.4%. 
  • Godrej Consumer Products (GCPL): It reported a 14% YoY drop in net profit due to temporary challenges. However, sales grew 6%, with home care revenue up 4% and strong growth in air fresheners and fabric care. 

Despite strong financials, high valuation, and weak earnings growth, the stock is a risky bet unless performance improves. 

Potentials: 

Godrej Enterprises Group (GEG) is investing ₹4,000 crore to improve its businesses and make operations more efficient across 14 different sectors. This move is also aimed at unlocking the value of its real estate holdings, especially in Mumbai. 

According to Nyrika Holkar, Executive Director of GEG, the company wants to expand its businesses, improve decision-making, and operate with more agility. The goal is to strengthen its consumer-first and nation-first approach, ensuring better products and services while growing strategically. It plans to pour money into:  

  1. Consumer-Focused Businesses—This includes furniture, security, and locks. The Interior furniture brand will evolve into a lifestyle brand with advanced engineering support. 
  1. Key Industries for India—Investment will also go into aerospace and process engineering, which are important for national growth. 
  1. Real Estate: A major focus will be on developing land in Vikhroli, Mumbai, which holds significant value for the group’s plans. 

GEG operates in aerospace, appliances, engines, energy, security, building materials, construction, healthcare, and furniture. Right now, the biggest revenue earners are appliances and interior design, followed by locks and security. With this investment, GEG aims to grow faster, improve efficiency, and create long-term value for its businesses and assets. 

Analyst Insights: 

Key Financial Metrics: 

  • Revenue (Q3FY24): ₹4,824.8 crore (+34.4% YoY) 
  • Net Profit (Q3FY24): ₹188.2 crore (+76.9% YoY) 
  • EBITDA: ₹596.8 crore (+113.75% YoY) 
  • EBITDA Margin: 12.4% (up from 7.8%) 
  • Market Cap: ₹27.5 billion (as of March 2024) 
  • P/E Ratio: 78.5x (very high compared to peers) 

The company’s stock is trading at 4.49 times its book value, suggesting high growth expectations but also potential overvaluation. Despite consistent profits, it is not paying dividends, indicating reinvestment but offering no direct returns to shareholders. Promoter holding has dropped by 1.95%, which may signal reduced confidence from key stakeholders. Additionally, the company has a low return on equity (6.83% over three years), meaning it is not generating strong returns on shareholder investments. There are also concerns about capitalizing interest costs, which could artificially boost profits. A significant part of its earnings comes from other income (₹2,482 Cr) rather than core operations, raising questions about sustainability. Overall, while the company shows growth potential, its high valuation, weak profitability, and reliance on non-core income make it a risky investment. 

Godrej Industries has shown strong revenue and profit growth, but its high valuation is a concern. The P/E ratio of 78.5x suggests the stock is expensive compared to earnings. Additionally, earnings declined 28% last year, and promoter holdings dropped 1.95%, which could signal caution. 

It is better to hold the stock. The company has strong financials but is overvalued and earnings growth is slow. If earnings improve, the stock may justify its high price, but for now, waiting is the best option. If you already own the stock, it’s best to wait and watch rather than sell because the company is still growing. 

If investors are thinking of buying, it’s too expensive right now, and better opportunities may come if the price drops or earnings improve. 

Godfrey Phillips India Ltd
Godfrey Phillips India Ltd: A Strong Player in the FMCG & Tobacco Industry with High Growth Potential

Business and Industry Overview: 

Godfrey Phillips India Limited is a flagship company of Modi Enterprises – KK Modi Group. The company is a major player in the FMCG sector, primarily known for its cigarette and tobacco business. It holds a major market share of 14 percent in India’s domestic cigarette industry. It also manufactures popular brands like Four Square, Red & White, and Cavanders, along with producing Marlboro under an agreement with Philip Morris. 

The tobacco business contributes 93% of total revenue (Q1 FY25), with 70% from domestic sales and 23% from international operations. It operates across 40+ countries. The non-tobacco segment (7%) includes confectionery (Funda brand) and retail (24Seven convenience stores). However, in April 2024, the company announced its exit from the retail business, incurring a ₹60 crore loss from closure costs. 

CRISIL forecasts 7-9% revenue growth for the FMCG sector in the current FY25, driven by increased volume and rural demand recovery. Fast-moving Consumer Goods (FMCG) sector is India’s fourth-largest sector and has been expanding at a healthy rate over the years because of rising disposable income, a rising youth population, and rising brand awareness among consumers. With household and personal care accounting for 50% of FMCG sales in India, the industry is an important contributor to India’s GDP. Godfrey Phillips is the second largest cigarette manufacturer in India by market capitalisation and by revenue. It has a market share of 14% in the domestic industry.  

Latest Stock News: 

There was a spike in the market price of Godfrey Phillips of  71% in one month and 49% year-to-date (YTD) after it announced its Q3 results on 13 February. Godfrey Phillips India reported a consolidated net profit of ₹315.84 crore in the fiscal third quarter ended December 2024, registering a growth of 48.73% from ₹212.35 crore in the same period last fiscal year. The company’s consolidated revenue from operations in Q3FY25 increased 27.42% to ₹1,895.52 crore from ₹1,487.54 crore, year-on-year (YoY). At the operational front, EBITDA in the December quarter grew 57.6% to ₹358.8 crore from ₹227.7 crore, while EBITDA margin expanded to 22.6% from 18.2%, YoY. 

Potentials: 

Godfrey Phillips is building on export markets. It is strengthening its partnership with Philip Morris International for Malro cigarettes in India. It is leveraging its distribution by entering into product supply agreements. Though there is a surge in the market price of the company in the past 5 days and positive Q3 results, there are a few risk factors for the company.  Regulatory risks, such as higher tobacco taxes, health-related restrictions, and ESG concerns, pose challenges. The retail business exit in April 2024 resulted in a ₹60 crore impairment loss, but it allows the company to focus on its core tobacco and confectionery businesses. Future expansion will be driven by geographic expansion in new cigarette markets and strengthening its export portfolio. 

Analyst Insights: 

Key Financial Metrics (Q3 FY25) 

Revenue Growth: +64% (FY22-FY24), driven by domestic cigarette volumes and export growth. 

Operating Margin: Declined from 24% to 20% due to rising tobacco prices and a higher share of low-margin unmanufactured tobacco. 

Retail Business Exit: ₹60 crore impairment loss recorded in Q1 FY25. 

Market Cap: ₹_33,900 Crore 

P/E Ratio: 32.4 

The company has reduced its debt and has also reported good Q3 results. It has also maintained a healthy dividend payout of 33.1%. The company has strong revenue growth, a dominant market position, and international expansion opportunities, making it a long-term positive prospect. However, regulatory uncertainties, margin pressures, and ESG concerns are key risks. The exit from the retail business is a strategic move to focus on core strengths. 

Patanjali Foods Ltd
Patanjali Foods Q3 Results: Net Profit Soars 71% YoY to ₹370 Crore, Revenue Strong Rises 15%

Patanjali Foods Limited: Overview 

Patanjali Foods Limited, earlier known as Ruchi Soya Industries Limited, is a major Indian multinational fast-moving consumer goods (FMCG) company that specializes in the food processing industry. Established in 1986 and headquarters in Indore, Madhya Pradesh, the company has developed as an important player in the edible oil sector and has diversity in various food and FMCG products. In 2019, Patanjali Ayurved under the leadership of Baba Ramdev and Acharya Balakrishna acquired Ruchi Soya, taking a strategic step to strengthen its position in the FMCG market. Subsequently, in June 2022, the company was rebuilt as Patanjali Foods Limited to align with the brand identity of its original company. The Indian FMCG region is experiencing a strong growth, which is inspired to increase consumer demand for health-centered and natural products. Patanjali foods have capitalized this trend by offering a series of products emphasizing traditional and natural ingredients. The company’s cooperation with Patanjali Ayurved has enhanced its brand image, taking advantage of the increasing consumer preference for Ayurvedic and organic products. However, the industry is highly competitive, in which many players are dying for market share, constant innovation and effective supply chain management. 

Latest Stock News 

Patanjali Foods Limited is moving positively after completing the consolidation of their home and personal care (HPC) business in relation to the broader market of consumer goods. Edible oil earned high profits regardless of the volatility in the world markets by controlling cost and operating efficiently. In order to enhance brand recognition and customer loyalty, the company has put more effort into marketing and advertising using a celebrity spokesperson. Moreover, Patanjali Foods has actively pursued the expansion of their oil palm plantation which strengthens their long term growth strategy in the edible oil segment. The company reported revenues from export sales of .2 67.27 crore during the quarter as they established a customer base in 29 countries. Overall, however, the FMCG sector showed a lower demand rate mainly through urban areas. In spite of this cross sector recession, food and FMCG segment added contributed 22.19% to the turnover for the quarter. Since the Patanjali Foods’ integration of the business, the Winsome Dental Kanti products and herbals Beauty Wash also considered as Marquet products has led the segment spending of HPC business to earn revenue of 420.36 crores. 

The edible oil segment by itself contributed a revenue of 6,717.47 crore, up from 5,482.64 from the previous period, in the previous period, a significant growth from 5,482.64 crore, with branded edible oils contributing about 75% of the total edible oil sales. Additionally, the company continues to progress in stability, earning ₹ 6.15 crore for Q3Fy25 with its Windmill Energy Segment. Patanjali foods also meet about 20% of their total energy requirements from renewable sources, which outlines their commitment for permanent operations. 

Business Segments: 

  • Edible oil: The company processs oilseeds and refines crude oil to produce various types of edible oils including soybean, sunflower, mustard and peanut oil. These products are marketed under well -established brands such as Ruchi Gold, Mahakosh and Sunric, who have achieved important consumer trusts over the years. The company has also entered the production of catering, vegetation and bakery fat for both retail consumers and industrial customers. 
     
  • Food and FMCG products: Variety beyond edible oils, Patanjali foods have expanded food and FMCG area, offering a wide array of products. This segment includes items such as biscuits, noodles, breakfast grains, texcharged soy protein and neutraceuticals. The neutralla brand known for its soy-based products has been an important contributor in this segment. In recent years, the company has also introduced new product lines, including health-oriented snacks and ready-to-Eat food, which align with the growing consumer demand for convenient and nutritious food options.  
     
  • Pawan Turbine Power Production: Patanjali foods have invested in renewable energy through their wind turbine power generation section. The company operates windmills with a total installed capacity of 84.6 MW, generates clean power for closure use and contributes surplus energy to the grid. This initiative not only supports environmental stability, but also helps in reducing operating energy costs. 

Subsidiary Information: 

  • Contemporary Agro Private Limited: In April 2024, Patanjali Foods included contemporary Agro Private Limited as a fully owned subsidiary. The primary objective of this assistant is to provide training to farmers, increase agricultural practices and new in farming and plantation activities. By focusing on improving the quality of seeds for fruits, vegetables and grains, contemporary agriculture aims to strengthen the company’s supply chain and promote sustainable agriculture.  
  • Rishikishi Farming Private Limited: Rishikrishi Farming Private Limited was also established in April 2024 as a fully owned subsidiary. This unit shares a uniform mission to advance agricultural practices by providing training and resources to farmers. A subsidiary focuses on taking advantage of human resources in farming to improve and create better agricultural methods, which contributes to the overall efficiency and productivity of the company’s agricultural supply chain. 

Q3 FY25 Earnings 

  • Revenue of ₹9103 crore in Q3 FY25 up by 15.3% YoY from ₹7911 crore in Q3 FY24.  
  • EBITDA of ₹541 crore in this quarter at a margin of 6% compared to 4% in Q3 FY24. 
  • Profit of ₹371 crore in this quarter compared to a ₹217 crore profit in Q3 FY24. 

Financial Summary 

Amount in ₹ Cr Q3 FY24 Q3 FY25 FY23 FY24 
Revenue 7911 9103 31525 31721 
Expenses 7567 8563 30231 30453 
EBITDA 344 541 1294 1286 
OPM 4% 6% 4% 4% 
Other Income 47 41 290 240 
Net Profit 217 371 886 765 
NPM 2.7% 4.1% 2.8% 2.4% 
EPS 5.9 10.3 24.5 21.2 
Varun Beverages
Varun Beverages Reports 36% YoY Profit Growth and 39.78% Revenue Surge in Q3

Business and Industry Overview

Varun Beverages Limited is an Indian multinational company that manufactures, bottles, and distributes beverages. It is the largest bottling company of PepsiCo’s beverages in the world outside the United States. The Company manufactures, distributes, and sells a wide range of carbonated soft drinks (CSDs), as well as a large selection of non-carbonated beverages (NCBs), including packaged drinking water sold under trademarks owned by PepsiCo. 

Pepsi, Pepsi Black, Mountain Dew, Sting, Seven-Up, Mirinda Orange, Seven-Up Nimbooz Masala Soda, and Evervess are PepsiCo products that is produced and sold by VBL. It has been granted franchisees for various PepsiCo products across 27 States and 7 Union Territories in India (responsible for ~90% beverage sales volume of PepsiCo India). Beginning with its incorporation and early expansion, PepsiCo acquired a 26% stake in 1998. In 2004, Devyani Beverages merged with VBL, further strengthening its operations.VBL has also been granted the franchise for the territories of Nepal, Sri Lanka, Morocco, Zambia, and Zimbabwe. Currently, our operations span six countries across the Indian sub-continent and Africa, collectively serving over 1.4 billion customers. 

The beverage industry is a very vast industry with various major players in the industry and Pepsi is one of the largest players with 33 % of the total market share. Varun Beverages Limited (VBL) accounts for about 90% of PepsiCo’s beverage sales in India. Revenue in the Beverages Market is projected to reach US$1,389.00m in 2025. The revenue in this industry is expected to show an annual growth rate (CAGR 2025-2029) of 11.90%, resulting in a projected market volume of US$2,178.00m by 2029. 

Latest Stock News

Varun Beverages Ltd reported a 36 percent rise in consolidated net profit at ₹195.64 crore for the December quarter of 2024 driven by volume growth and improved margins. The company, which follows the calendar year as its financial year, had posted a net profit of ₹143.76 crore during the October-December period a year ago, according to a regulatory filing from VBL. Revenue from operations was higher at ₹3,817.61 crore during the fourth quarter as against ₹2,730.98 crore in the corresponding period last fiscal. The EBITDA increased by 38.7 percent to ₹579.97 crore from ₹418.29 crore.  

Segmental information

It has 3 main business segments in India: 

Carbonated soft drinks: It is a major distributor partner of Pepsi products in India which includes products like Pepsi, Pepsi Black, Mountain Dew, Sting, Seven-Up, Mirinda Orange, Seven-Up Nimbooz Masala Soda, and Evervess.  

Non-carbonated drinks: Apart from carbonate drinks it also manages  the production and distribution of Tropicana Slice but only distributes other Tropicana products like Tropicana 100% and Tropicana Delight in India.  

Dairy-based beverages: VBL’s parent company, RJ Corp, has a strong presence in the dairy industry through its subsidiary Devyani Agro Industries, which produces and sells dairy products under the brand Cream Bell in India. 

Subsidiary Information

Varun Beverages (Nepal) Private Limited: 

• Varun Beverages Lanka (Private) Limited 

– Ole Springs Bottlers (Private) Limited (step-down subsidiary) 

• Varun Beverages Morocco SA 

• Varun Beverages (Zambia) Limited 

• Varun Beverages (Zimbabwe) (Private) Limited 

• Varun Beverages RDC SAS 

• Varun Beverages International DMCC 

• Varun Beverages South Africa (Pty) Ltd.:  

• VBL Mozambique, SA  

• Lunarmech Technologies Private Limited 

Associates 

• Clean Max Tav Private Limited 

• Huoban Energy 7 Private Limited 

Joint Venture 

• IDVB Recycling Operations Private Limited 

Q3 Highlights

  • Revenue Growth has increased by 39.78% to ₹ 3,817.61 crore compared to the latest December quarter (from ₹ 2,730.98 crore a year ago). 
  • EBITDA rose 39% to ₹ 580 crore compared to ₹ 418 crore in the same period last year. 
  • The board declared a   ₹0.50 dividend, subject to shareholder approval in the upcoming AGM, and the record date is yet not decided.  

Financial Summary

Amount in ₹ Cr Q4 FY23 Q3 FY24 FY23 FY24 
Revenue 2,730.980 3,817.61 16,043 20,008 
Expenses 2,249 3,110 12,326 15,298 
EBITDA 418 580 3,075.00 4,830.00 
OPM 16% 16% 23% 24% 
Other Income 9 45 -5 121 
Net Profit 144.00 196.00 2,102 2,634 
NPM 5.40 5.31 13.10 13.16 
EPS 0.41 0.55 6.33 7.67 
ITC Q3 FY25 Results
ITC Q3 FY25 Results: Consolidated PAT Declines 7% YoY to ₹4,935 Crore, Revenue Growth at 8%

ITC Ltd: Overview 

ITC Ltd. is one of India’s leading conglomerates with a diversified presence across multiple industries, including fast-moving consumer goods (FMCG), hotels, paperboards and packaging, agri-business, and information technology. Established in 1910, ITC has grown into a market leader in several sectors, driven by its strong brand portfolio, innovative products, and sustainability initiatives. The company’s core strengths lie in its deep distribution network, robust supply chain, and extensive research and development capabilities, enabling it to cater to evolving consumer preferences effectively. The FMCG segment, which includes foods, personal care, and education stationery, has been a major growth driver for ITC, contributing significantly to its revenues. ITC has been focused on sustainability and environmental responsibility, with initiatives such as carbon-positive and water-positive operations. The company’s investments in green businesses, renewable energy, and circular economy practices underscore its commitment to responsible growth. The Indian FMCG sector is expected to grow at a CAGR of 10-12%, driven by the increasing preference for packaged foods, health-conscious products, and digital shopping channels. ITC’s strong distribution network and expanding product portfolio position it well to capture this growth. ITC continues to hold a dominant position with a market share of over 75%. Growth in premium segments and the company’s pricing power support revenue stability. The Indian agricultural sector continues to expand, supported by government reforms and increasing food exports. 

Latest Stock News

During the quarter, ITC experienced a sharp escalation in the costs of key input materials such as edible oil, wheat, potato, leaf tobacco, and wood, impacting overall margins. Despite these cost pressures, the company maintained its growth trajectory and continued to focus on value creation. The Board has recommended an Interim Dividend of ₹6.50 per share for the financial year ending March 31, 2025, reflecting its commitment to shareholder returns. The Cigarettes segment performed well, with net segment revenue rising by 8.1% YoY and segment PBIT increasing by 4.1% YoY. However, competitive intensity remains high, particularly in categories like noodles, snacks, biscuits, and popular soaps, where local players continue to exert pressure. The macroeconomic environment presents challenges, with India’s real GDP growth estimated at 6.4% for FY25, down from 8.2% in FY24. A broad-based slowdown in manufacturing and a deceleration in investment growth have contributed to this moderation. In a strategic move, ITC completed the demerger of its Hotels Business, transferring operations to ITC Hotels Limited (ITCHL), which became effective on January 1, 2025. ITC Hotels Limited was successfully listed on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) on January 29, 2025, and is now reported as ‘Discontinued Operations’ in the financial results for the quarter and nine months ended December 31, 2024. Despite industry challenges, ITC continues to leverage its strong customer relationships and agile execution capabilities to drive growth in Leaf Tobacco and Value-Added Agri Exports, ensuring a robust presence in key markets. The company remains focused on sustaining its leadership across core business segments while adapting to evolving market dynamics. 

Business Segments

  • FMCG: ITC is the undisputed leader in the Indian cigarette industry, with a diverse portfolio of brands catering to different consumer segments. The cigarette business remains highly profitable and is a major contributor to ITC’s bottom line. Apart from cigarettes, ITC has built a strong presence in non-cigarette FMCG categories, such as packaged foods, personal care and hygiene products. The FMCG segment has been growing rapidly, with the company expanding into newer categories like dairy, frozen snacks, and beverages.  
  • Hotels: ITC Hotels is one of India’s largest luxury hotel chains, with a presence in premium and mid-market segments. The company operates properties under brands like ITC Hotels, WelcomeHotels, Fortune, and Storii. ITC Hotels is known for its sustainable luxury approach, with several properties achieving LEED Platinum certification. The hospitality business has been recovering strongly, driven by increased travel demand and the expansion of leisure and business tourism.  
  • Paperboards, Paper & Packaging: ITC is a market leader in premium paperboards and sustainable packaging solutions. The segment caters to various industries, including FMCG, pharmaceuticals, and e-commerce. ITC’s investments in high-quality, eco-friendly paper products have positioned it well in the growing demand for sustainable packaging.  
  • Agri-Business: ITC’s agri-business division is a key player in the Indian agricultural sector, dealing in wheat, rice, spices, and other commodities. The company’s e-Choupal initiative, a digital agri-platform, has revolutionized supply chain efficiencies and improved farmer livelihoods. ITC continues to strengthen its farm-to-fork capabilities, ensuring high-quality sourcing for its FMCG businesses. 
  • IT & Digital Services (ITC Infotech): ITC Infotech is a global IT services and solutions provider catering to industries such as manufacturing, retail, and financial services. The subsidiary specializes in digital transformation, AI, cloud computing, and analytics. ITC Infotech has been expanding its global footprint through strategic acquisitions and partnerships, contributing to the overall growth of ITC Ltd. 

Subsidiary Information

  • ITC Infotech: ITC Infotech is a wholly-owned subsidiary that provides IT solutions and consulting services. It caters to global clients across industries such as BFSI, retail, healthcare, and manufacturing. The subsidiary has been focusing on expanding its capabilities in AI, automation, and cybersecurity, strengthening its position as a digital transformation partner for enterprises. 
  • Surya Nepal Pvt Ltd: A joint venture between ITC and Nepalese partners, Surya Nepal is the largest cigarette manufacturer in Nepal. Apart from cigarettes, the company has diversified into apparel and lifestyle products under the John Players brand. Surya Nepal contributes significantly to ITC’s international revenue streams. 
  • Technico Agri Sciences Ltd: This subsidiary focuses on agribiotechnology, specializing in high-yield seed varieties and improving agricultural productivity. Technico Agri Sciences plays a crucial role in ITC’s agri-business operations by enhancing crop quality and farm output, benefiting both farmers and ITC’s FMCG segment. 
  • WelcomHotels Lanka Pvt Ltd: ITC’s international expansion in the hospitality segment includes WelcomHotels Lanka, a subsidiary overseeing the development of a luxury hotel and mixed-use property in Sri Lanka. This venture aligns with ITC’s strategy of expanding its footprint in high-growth tourism markets. 
  • North East Nutrients Pvt Ltd: This subsidiary focuses on manufacturing and distributing food products, particularly under the Aashirvaad brand. It plays a critical role in ITC’s packaged foods supply chain, ensuring consistent quality and production efficiency. 

Q3 FY25 Earnings 

  • Revenue of ₹18790 crore in Q3 FY25 up by 9.3% YoY from ₹17195 crore in Q3 FY24.  
  • EBITDA of ₹6362 crore in this quarter at a margin of 34% compared to 36% in Q3 FY24. 
  • Profit of ₹5013 crore in this quarter compared to a ₹5407 crore profit in Q3 FY24. 

Financial Summary 

Amount in ₹ Cr Q3 FY24 Q3 FY25 FY23 FY24 
Revenue 17195 18790 70919 70866 
Expenses 10985 12428 45215 44634 
EBITDA 6210 6362 25704 26233 
OPM 36% 34% 36% 37% 
Other Income 820 803 2098 2804 
Net Profit 5407 5013 19477 20751 
NPM 31.4% 26.7% 27.4% 29.3% 
EPS 4.3 3.9 15.4 16.4 
Nestle India Q3 FY25 Results
Nestlé India Q3 FY25 Results: Revenue Rises 3.9% YoY to ₹4,780 Cr, Profit at ₹688 Cr

Nestle India Ltd: Overview 

Nestle India Limited, a subsidiary of the Swiss multinational Nestle S.A., is one of the leading FMCG companies in India, specializing in nutrition, health, and wellness products. With a presence spanning over six decades, Nestle India has become synonymous with quality and innovation in the Indian food and beverage industry. The company operates in various product categories, including dairy, confectionery, beverages, instant foods, and infant nutrition, with some of the most recognized brands like Maggi, Nescafe, KitKat, and Cerelac. Nestle India’s extensive distribution network ensures that its products are widely available across urban and rural markets, supported by continuous investments in research, development, and local manufacturing. The company focuses on sustainable growth, innovation in nutritional science, and digital transformation to enhance consumer experience, making it a dominant player in the Indian FMCG sector. The Indian food and beverage industry is poised for robust growth, driven by rising disposable incomes, urbanization, and increasing health consciousness among consumers. The industry is expected to expand due to growing demand for packaged and ready-to-eat foods, fortified nutrition products, and plant-based alternatives. The e-commerce and digital retail boom further strengthens Nestle India’s market position, allowing it to reach a broader consumer base. Moreover, the Indian government’s emphasis on food safety regulations, nutrition awareness programs, and sustainable manufacturing practices aligns with Nestle’s long-term business strategy. The sector faces challenges such as raw material price volatility, changing consumer preferences, and regulatory complexities, but Nestle India continues to innovate with new product launches and sustainable packaging solutions. 

Latest Stock News 

In the third quarter, three out of four product groups demonstrated strong growth, driven by a combination of pricing and volume expansion. Key brands continued to perform well, which is encouraging despite the challenging market environment. Nestle’s powdered and liquid beverages segment was the largest growth driver, achieving high double-digit growth. Notably, the beverages retail segment surpassed ₹2000 crore, in revenue over the last twelve months, marking a significant milestone. The Out-of-Home business also reported strong double-digit growth, particularly in the food and beverage solutions portfolio. E-commerce maintained its rapid growth trajectory, posting high double-digit growth and contributing 9.1% to domestic sales. Additionally, new product launches since 2015 now account for approximately 7% of the company’s total sales. 

This quarter was characterized by food inflation, a slowdown in urban consumption, and a gradual recovery in rural markets. Revenue is projected to grow by 4%, supported by a 2% increase in volume and price hikes. However, EBITDA margins are expected to decline by 189 basis points year-over-year to 22%, largely due to weaker gross margin performance. Key factors to monitor include the demand outlook in rural versus urban markets, competitive intensity, and raw material price trends. Nestle has also expanded its manufacturing capacity with a new production line for KitKat in Gujarat, which will have an annual capacity of 15,000 tons. The estimated capital expenditure for this unit is around ₹1,100 crore, which will be fully funded through internal accruals without the need for external borrowing. 

Business Segments

  • Prepared Dishes & Cooking Aids: This segment includes the flagship Maggi brand, which dominates the instant noodles and ready-to-cook meals category in India. Nestle India continues to innovate within this segment by introducing healthier variants, fortified products, and expanding its range of pasta, soups, and seasonings. 
  • Milk Products & Nutrition: This segment covers dairy-based products such as Nestle Milk, Every day, Nestle Slim Milk, and Cerelac, catering to consumers of all age groups. The company focuses on enhancing nutritional value, affordability, and sustainability in its dairy offerings, with an increasing shift towards fortified and protein-rich products. 
  • Beverages: Nestle India holds a strong market share in the beverages segment with brands like Nescafe, Nestea, and Milo. The rising demand for premium and instant coffee products, along with increasing consumer preference for healthy and functional beverages, has led to further innovations in this segment. 
  • Chocolate & Confectionery: Nestle’s stronghold in the confectionery segment includes globally popular brands like KitKat and Munch. The segment benefits from premiumization trends and increasing chocolate consumption in India, with the introduction of innovative flavours, formats, and healthier alternatives. 
  • Infant Nutrition: With brands like Lactogen and Nan Pro, Nestle India is a leading player in the infant nutrition market. The company focuses on providing scientifically advanced, safe, and highly nutritious products to support early-stage child development. 

Subsidiary Information

  • Nestle R&D Centre India Pvt Ltd: This subsidiary plays a crucial role in Nestle’s innovation pipeline, focusing on product development, quality enhancement, and customization for the Indian market. The R&D center collaborates with local agricultural and nutrition experts to ensure that Nestle India stays ahead in terms of product relevance and nutritional advancements. 
  • Nestle India Beverages Pvt Ltd: This subsidiary manages Nestle India’s beverage portfolio, primarily overseeing the Nescafe brand and its expansions into instant coffee, cold brews, and functional drinks. Given the rising demand for ready-to-drink and plant-based beverages, this division focuses on continuous innovation and premiumization. 
  • Nestle Nutrition India Pvt Ltd: Dedicated to infant and maternal nutrition, this subsidiary oversees the production, marketing, and distribution of brands like Cerelac, Lactogen, and Nan Pro. It is committed to scientific research in early nutrition, aiming to provide high-quality, fortified, and safe nutrition products for Indian consumers. 
  • Nestle Waters India Pvt Ltd: This subsidiary handles Nestle’s bottled water business, catering to the growing demand for premium and packaged drinking water solutions. While still a niche segment, Nestle Waters India is expanding into sustainable and functional hydration solutions, including flavoured and vitamin-enhanced waters. 
  • Nestle India Services Pvt Ltd: This subsidiary focuses on supply chain, logistics, and customer service operations, ensuring smooth production and efficient market distribution. It plays a vital role in digitizing Nestle India’s supply chain, reducing costs, and enhancing product availability across urban and rural markets. 

Q3 FY25 Earnings 

  • Revenue of ₹4780 crore in Q3 FY25 up by 3.9% YoY from ₹4600 crore in Q3 FY24.  
  • EBITDA of ₹1077 crore in this quarter at a margin of 23% compared to 24% in Q3 FY24. 
  • Profit of ₹688 crore in this quarter compared to a ₹656 crore profit in Q3 FY24. 

Financial Summary 

Amount in ₹ Cr Q3 FY24 Q3 FY25 CY23 FY24 
Revenue 4600 4780 19126 24394 
Expenses 3505 3703 14655 18581 
EBITDA 1095 1077 4471 5813 
OPM 24% 23% 23% 24% 
Other Income -77 4 116 159 
Net Profit 656 688 2999 3933 
NPM 14.3% 14.4% 15.7% 16.1% 
EPS 6.8 7.1 31.1 40.8 
Britannia Industries Q2 Earnings
Britannia Industries Q2 Earnings: 9.6% Decline in Net Profit, 8% Volume Growth Achieved

Company Overview

Britannia Industries Ltd., one of India’s leading FMCG companies, has established a prominent position in the food and beverages sector, primarily focusing on bakery products. Known for its vast portfolio of biscuits, bread, cakes, dairy products, and other snacks, Britannia enjoys high brand recognition and consumer trust across India and in various international markets. Britannia is best known for its biscuit brands, commanding over 30% market share in India. Britannia has established a strong distribution network of 30000, reaching both urban and rural markets, helping it maintain a leading position in India’s competitive biscuits market. Britannia has a growing international presence, operating in over 70 countries, including the Middle East, Africa, North America, and Southeast Asia. Britannia has 13 manufacturing facilities across India, producing a wide range of products with a focus on quality and efficiency. It also has an extensive network of third-party manufacturing units. Britannia’s robust portfolio, brand strength, extensive distribution, and continuous innovation place it at a strong position within India’s FMCG sector.

Industry Outlook

The Indian Fast-Moving Consumer Goods (FMCG) industry is one of the most robust and dynamic sectors, driven by strong demand, population growth, rising income levels, and increased urbanization. The Indian FMCG sector is projected to grow at a CAGR of 10-12% over the next five years, driven by rural market expansion, rising incomes, and a favourable demographic dividend.  As of recent estimates, the FMCG market in India is valued at over $110 billion, making it the fourth-largest sector in the Indian economy. Rural demand now contributes to 45-50% of total FMCG sales and is expected to continue growing. Rising disposable incomes are shifting consumption patterns toward premium and value-added products. Online FMCG sales have grown rapidly, particularly in urban areas, and are expected to account for 10-12% of FMCG sales by 2025.

Financial Summary

INR Cr.Q1 FY25Q2 FY25FY23FY24
Revenue425046681630116769
EBITDA75378028313167
OPM18%17%17%19%
PBT68171530332913
Net Profit50553223162134
NPM11.8%11.4%14.2%12.7%
EPS20.9922.0696.3988.84
C&CE215250198446

Business Segments:

  • Bakery Business: It involves many sub segments in it, Biscuit is a major part of this segment and is continued to grow. Cakes are in category continuous to grow in of ₹5-10 price points products and large priced products are having substantial growth. Rusk is having some tough competition from its strong new entrants. In bread category, it is having a great growth as more demand from consumers with over turnover of ₹450 crore.
  • Dairy Business: It involves cheese and drinks like Lassi which is showing a healthy double digit growth. Packaged liquid milk remains a key growth driver of the industry, healthy demand and growth is also expected in cheese, yogurt and other value added dairy products.
  • Adjacent Business: This segment has Wafers which is highly fragmented market of ₹1000 crore. Croissant is also a product of Britannia in this segment, able to achieve good growth in urban areas. Salted snacks or packets is a growing at double digit rate and is most profitable and high volume category.
  • International Business: International Business for the Company is largely centered on Middle East, Americas, Africa and Asia Pacific. The business environment in these geographies is highly competitive with the presence of large local and international players. And exports contribute around 6% in the revenue.

Subsidiary Information:

These are majorly big subsidiaries of Britannia Industries established in India and all over the world. But, there are total over 25+ subsidiaries under it.

  • Manna Foods: Manna Foods allows Britannia to tap into the health and wellness market, expanding its footprint in the packaged foods segment. The yearly turnover for this subsidiary is ₹367 crore, It provides traditional and health-focused foods like millet-based products and ready-to-cook items.
  • AI Sallan Food Industries: This subsidiary helps Britannia access new markets and diversifies revenue streams outside of India. It manufactures and distributes bakery products, primarily in Oman and the Middle East. It had a main focus of international expansion and it has a turnover of ₹ 231 crore in FY24.
  • Britannia Nepal Pvt Ltd: This entity manufactures and distributes Britannia’s core product lines in Nepal, catering to local demand and establishing a stronger footprint in South Asia. Enables Britannia to reduce logistics costs and gain market share in Nepal’s packaged food sector.
  • Strategic Foods International Co. Ltd: It is based in Dubai have product categories of biscuit, cookies and cakes. Predominantly in the Middle East and Africa, where it taps into a growing demand for packaged food and snacks. It plays a key role in diversifying Britannia’s revenue streams beyond India, supporting the company’s goal of becoming a global food brand.

Q2 FY25 & Business Highlights

  • Revenue of ₹4668 crore in Q2 FY25 up by 5.29% YoY from ₹4433 crore in Q2 FY24.
  • EBITDA of ₹780 crore in this quarter at a margin of 17% compared to 20% in Q2 FY24.
  • Profit of ₹532 crore in this quarter compared to a ₹586 crore profit in Q2 FY24.
  • Metro FMCG growth rate is lower compared to Urban and Rural regions of India.
  • Adjacent Businesses are doing really well in cake, wafers, Rusk, Cheese and Drinks.
  • Commodity prices of Sugar, Cocoa, Flour Oils, etc. are increasing due to inflation, which will affect the profitability.
  • Capex of ₹450-₹500 crore is planned to use in FY25, through internal accruals, long-term debts and cash and use it to expand in India and International markets.

SWOT Analysis:

Strengths

  1. Established brand with strong recognition.
  2. Wide-ranging product portfolio.
  3. Broad and effective distribution network.

Weaknesses

  1. Heavy reliance on the biscuits segment.
  2. High sensitivity to input cost fluctuations.

Opportunities

  1. Expansion into dairy and health food categories.
  2. Potential growth in untapped rural markets.
  3. Opportunities for mergers, acquisitions, and partnerships.

Threats

  1. High levels of competition in the market.
  2. Volatility in raw material prices.
  3. Potential impacts from economic slowdowns.
  4. Rising health consciousness shifting consumer preferences.