Price hike may drive FMCG firm's revenue

Fast moving consumer goods companies in the April June quarter are expected to show higher revenues on the back of pricie increases. However volumes are expected to remin under pressure because rising inflation is affecting demand.Discretionary spend was higher in the quarter than staples. Rural demand for FMCG was under pressure during the quarter.Godrej consumer products said in its quarterly update that rural markets witnessed slow growth compared to urban.Motilal Oswal said in its preview note on the sector sales growth in the quarter would largely be led by price hikes because volumes for most categories remained affected by grammage reduction, high consumer prices ,and sustained slowdown in rural demand.