Hindustan Unilever s Q3FY24 performance was lacklustre, with both sales and operating profit barely moving from the year-ago period due to price cuts and higher advertising costs.
Besides weak demand, the FMCG (fast-moving consumer goods) major is facing increased competitive pressures, particularly from regional players, which, coupled with a slow recovery in rural markets, could put revenues under pressure going forward.
Margins are expected to remain range-bound as benefits from falling raw material costs are expected to be neutralised by rising promotional budgets.
The interim budget for FY25, which will be presented on February 1 after the Lok Sabha elections, is likely to stay on the fiscal course-correction glide path and avoid populist spending. However, the retail industry s message of slowing consumption cannot be ignored. India s top retailers have slowed down their store expansion this fiscal year due to a sharper focus on profitability and lower-than-expected consumption levels. Retail sales have also been affected, with a growth of only 7% in October and November 2023 compared to the same period in 2022. The budget should focus on generating demand and spurring consumption by offering tax benefits and relief to individual taxpayers.
Monday s announcement marks the conclusion of a two-year deal process. The merger with Sony, according to analysts, was expected to potentially rescue Zee from its current crises and decline in market share.
Two years ago, the Goenkas were able to fend off a challenge from activist shareholder Invesco which had tried to remove Goenka as MD and CEO because of weak leadership and poor corporate governance standards at Zee
Interim Budget: Finance Minister Nirmala Sitharaman will present the interim budget on February 1. There are hopes and expectations from various segments of the population regarding the budget. Some believe that Sitharaman might deliver a populist budget due to the upcoming Lok Sabha elections, while others think the government is not under pressure to please different voting segments. Another argument is that the budget might provide benefits to the bottom rungs of the economy, including rural and urban poor. The budget could also extend social security benefits to domestic workers as part of the proposed Social Security Code.