iifl-logo-icon 1
IIFL

Invest wise with Expert advice

By continuing, I accept the T&C and agree to receive communication on Whatsapp

  • Open Demat with exclusive Advice & Services
  • Get a dedicated Relationship Manager to help you grow your wealth
  • Exclusive advisory on 20+ trading & wealth-based investment options
  • One tap Investments, Automated trading & much more
  • Minimum 1 lakh margin required
sidebar image

Consumer: Quirks of the Quarter Q3FY24

26 Mar 2024 , 03:17 PM

In the 15th edition of analysts of IIFL Securities “Quirks of the Quarter” series, they explore eleven themes ranging from sectoral topics such as Zomato vs. QSR, Asian Paints vs. Pidilite, jewellery industry – organized vs. unorganized and also company specific issues in HUL, ITC, Trent, Dabur, Marico, Nykaa, Sula and BBQ Nation. 

1. QSR vs. Zomato: Divergent trends – Contrary to the subdued performance of QSR space in recent quarters, Zomato continues to report healthy numbers in its food delivery business (growth of 27% YoY). Even on a per restaurant basis, there has been considerable divergence between Zomato and the QSR players in recent quarters. 

2. Nykaa fashion – on the right track – Nykaa is reporting healthy increase in its fashion AOV (up 18% YoY) but its NSV to GMV ratio is also falling consistently. Analysts of IIFL Securities note that NSV per order is still growing secularly over several quarters, which is a healthy sign for the overall business. 

3. HUL – poor on all parameters: HUL reported a poor Q3FY24, not delivering on any of the vital parameters – volume growth, value growth, operating margin, market share gain. Analysts of IIFL Securities find that HUL’s Q3FY24 performance is exceptionally poor on these fronts, compared vs. its own history. 

4. Marico – frequent channel down-stocking: Marico has reported lower primary growth vs. offtake growth for three consecutive quarters. Subdued demand and price deflation has impacted the ROI of Marico’s distributors, and the company has taken corrective steps this quarter, which is likely to re-align primary growth with off-take growth going forward. 

5. Sula – the margin expansion mystery – Sula reported gross margin expansion of 370bps YoY in Q3FY24, despite increased selling and distribution expenses. The mix effect from higher growth in elite and premium wines however, explains only part of this margin expansion. 

6. Volume growth – Asian Paints vs Pidilite: Asian Paints has outperformed Pidilite in terms of reported volume growth. However, adjusted for the negative mix impact in Asian Paints, Pidilite’s performance has been better both in YoY as well as 4 year Cagr terms. 

7. ITC – moderation in volume growth? ITC’s cigarette volumes declined by 1-2% YoY and while absence of channel up-stocking before the annual union budget may have played a part, analysts of IIFL Securities explore other possible reasons for the moderation in volumes. 

8. Dabur – A subdued performance in beverages: Dabur’s beverage segment grew 7% YoY and average for Q2 + Q3 (adjusted for festive shift) is a decline of 1.6%. The growth in this portfolio has decelerated significantly from 30% growth reported in FY23. Also, Dabur is underperforming its peer Varun Beverages in this segment. 

9. Trent – gross margin expansion: Trent reported 57bps gross margin expansion in Q3FY24, despite the construct of its top-line growth (53% YoY) being skewed towards the lower margin Zudio format. Gross margin expansion across both Westside and Zudio, driven by moderating cotton prices is likely to be the key reason. 

10. BBQ Nation – Ebitda margin expansion: Despite a poor show in terms of same store sales (a decline of 5% YoY), BBQ Nation reported Ebitda margin expansion of 64bps YoY to 11% in Q3. Analysts of IIFL Securities believe that stores closed in M9FY24, which probably had lower sales throughput, are key contributors to the gross margin as well as Ebitda margin expansion, and going forward, SSS growth is likely to be the key lever for further margin expansion. 

11. Jewellery – increased shift towards organised retailers: Organized players in the jewellery sector have been reporting robust performance in recent quarters, ahead of overall jewellery industry. Unlike earlier feared, multiple organized chains are able to scale up without impacting growth of each other.

Related Tags

  • Consumer
sidebar mobile

BLOGS AND PERSONAL FINANCE

Images
14 Apr 2024   |   07:25 PM
Images
14 Apr 2024   |   07:23 PM
Images
14 Apr 2024   |   07:21 PM
Images
14 Apr 2024   |   07:15 PM
Read More

Most Read News

12 Apr 2024   |   08:25 PM
12 Apr 2024   |   08:14 PM
12 Apr 2024   |   08:13 PM
12 Apr 2024   |   08:13 PM
12 Apr 2024   |   08:08 PM
Read More
Knowledge Centerplus
Logo

Logo IIFL Customer Care Number
(Gold/NCD/NBFC/Insurance/NPS)
1860-267-3000 / 7039-050-000

Logo IIFL Securities Support WhatsApp Number
+91 9892691696

Download The App Now

appapp
Knowledge Centerplus

Follow us on

facebooktwitterrssyoutubeinstagramlinkedin

2024, IIFL Securities Ltd. All Rights Reserved

ATTENTION INVESTORS
  • Prevent Unauthorized Transactions in your demat / trading account Update your Mobile Number/ email Id with your stock broker / Depository Participant. Receive information of your transactions directly from Exchanges on your mobile / email at the end of day and alerts on your registered mobile for all debits and other important transactions in your demat account directly from NSDL/ CDSL on the same day." - Issued in the interest of investors.
  • KYC is one time exercise while dealing in securities markets - once KYC is done through a SEBI registered intermediary (broker, DP, Mutual Fund etc.), you need not undergo the same process again when you approach another intermediary.
  • No need to issue cheques by investors while subscribing to IPO. Just write the bank account number and sign in the application form to authorise your bank to make payment in case of allotment. No worries for refund as the money remains in investor's account."

www.indiainfoline.com is part of the IIFL Group, a leading financial services player and a diversified NBFC. The site provides comprehensive and real time information on Indian corporates, sectors, financial markets and economy. On the site we feature industry and political leaders, entrepreneurs, and trend setters. The research, personal finance and market tutorial sections are widely followed by students, academia, corporates and investors among others.

RISK DISCLOSURE ON DERIVATIVES
  • 9 out of 10 individual traders in equity Futures and Options Segment, incurred net losses.
  • On an average, loss makers registered net trading loss close to Rs. 50,000.
  • Over and above the net trading losses incurred, loss makers expended an additional 28% of net trading losses as transaction costs.
  • Those making net trading profits, incurred between 15% to 50% of such profits as transaction cost.
Copyright © IIFL Securities Ltd. All rights Reserved.

Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213,IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248

plus
We are ISO 27001:2013 Certified.

This Certificate Demonstrates That IIFL As An Organization Has Defined And Put In Place Best-Practice Information Security Processes.

closeIcon

Get better recommendations & make better investments

Invest wise with Expert advice

By continuing, I accept the T&C and agree to receive communication on Whatsapp