The FMCG sector is expected to see a moderate revenue growth this fiscal, a new report said. File
| Photo Credit: MOHD ARIF

The fast-moving consumer goods (FMCG) sector is expected to see revenue growth of 7-9% this fiscal, according to a report released by CRISIL Ratings on July 6.

The expected revenue increase in FY 2024-25 will be supported by higher volume growth due to a revival in rural demand and a steady demand from urban areas. The estimated growth of the FMCG sector in 2023-24 was 5-7%.

The report said product realisation is expected to grow in single digits with a marginal rise in prices of key raw materials for the food and beverage (F&B) segment. However, the prices of key raw materials for the personal care and home care segments are likely to be stable.

CRISIL Ratings Director Rabindra Verma said, “Revenue growth will vary across product segments and firms. The F&B segment is expected to grow 8-9% this fiscal, aided by improving rural demand. The personal care segment is likely to grow by 6-7%, and the home care by 8-9%.”

The FMCG players will continue to eye inorganic opportunities, which will help them expand product offerings, the report said. Sustained improvement in the rural economy, which depends on the monsoons and farm incomes, will be essential for generating steady demand, it added.

Adani Power Limited’s bank loan facilities were rated ‘A’ with a stable outlook earlier.
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Crisil Ratings has upgraded its ratings on Adani Power Limited’s (APL) ₹38,000 crore of bank loan facilities to ‘AA-‘, saying the business and financial risk profile of the company has seen “strong improvement”. The loan facilities were rated ‘A’ with a stable outlook earlier.

“The rating upgrade follows the strong improvement in the business and financial risk profiles of APL,” Crisil Ratings said in a report.

“The upgrade is driven by better-than-expected operating performance backed by timely commissioning and ramp-up of the Godda power plant (1.6 GW), Mahan power plant (1.2 GW), full recovery of pending regulatory dues related to claims for fuel costs as pass-through under change in law clauses of existing power purchase agreements (PPAs) and continued improvement in receivables,” it said.

“The rating also factors in the completion of most of the regulatory investigations into Adani Group. Regulatory investigations in two remaining allegations are under way and are expected to be completed over the next three months,” the ratings agency said.

It further said that APL has recovered a majority of pending regulatory dues, including carrying costs and late payment surcharge (LPS) between April and October 2023 from counterparties, post-resolution of the matter in APL’s favour through the order of Supreme Court of India in March and April 2023.

“The company has been receiving monthly receivables on a timely basis, including recurring regulatory claims, supporting its operating cash flow. The operating performance of APL has been strong with robust plant load factor (PLF) and healthy operating margin,” it said.

The company had better-than-expected operating earnings before interest, taxes, depreciation and amortisation (EBITDA) of ₹10,041 crore for fiscal 2023 and ₹7,926 crore for the first half of fiscal 2024 (₹10,280 crore in fiscal 2022).