The primary goal of establishing a business is to generate profits. While achieving profitability is advantageous, maintaining a consistent growth in profits holds even greater appeal, as it ensures continuous advancement without any interruptions.
The Fast-Moving Consumer Goods (FMCG) sector in India is a significant and rapidly growing industry. FMCG products are those that are consumed frequently, usually on a daily or regular basis. These products include items such as food and beverages, personal care products, household cleaning products, and other consumables.
There is always pricing pressure on FMCG companies due to identical products being sold by these companies. For example, bathing soap is manufactured and sold by almost every company at almost the same rate. In this scenario, it becomes tough to maintain customers and boost both revenue and profitability.
In this article, we are going to explore the most profitable FMCG companies and analyse the extent of profit growth they have achieved on a year-over-year (YoY) basis. To facilitate a better understanding, we have categorised these companies based on their market capitalization, as outlined below.
Companies above market capitalisation of Rs 50,000 crore:
|
Company Name |
CMP Rs | Market Cap Rs in Cr | Sales Q1 FY24 Rs in Cr | Profit Q1 FY23 Rs in Cr | Profit Q1 FY24 Rs in Cr | % Changes |
| Hindustan Unilever | 2571.15 | 604115.18 | 15496 | 2391 | 2556 | 7% |
| Nestle India | 22164.9 | 213703.98 | 4658.53 | 510.24 | 698.34 | 37% |
| Dabur India | 558.9 | 99039.01 | 3130.47 | 441.06 | 456.61 | 4% |
| Britannia Industries | 4527.4 | 109050.71 | 4010.7 | 335.74 | 455.45 | 36% |
| Marico | 559.45 | 72355.27 | 2477 | 377 | 436 | 16% |
| Godrej Consumer | 1028.55 | 105195.85 | 3448.91 | 345.12 | 318.82 | -8% |
| Colgate-Palmolive | 1970.7 | 53600.2 | 1323.67 | 209.67 | 273.68 | 31% |
| P & G Hygiene | 15551.7 | 50481.95 | 883.09 | 102.85 | 165.02 |
60% |
If we observe the data above, Hindustan Unilever tops the list in terms of market capitalisation and net profit reported by the company in Q1 FY24. However, when checking the profit growth, it is not impressive, with a mere 7% YoY growth. In terms of profit growth YoY, P & G Hygiene Limited takes the lead by achieving a 60% profit growth in Q1 FY24.
Companies below market capitalization of Rs 50,000 crore
|
Company Name |
CMP Rs | Market Cap Rs in Cr | Sales Q1 FY24 Rs in Cr | Profit Q1 FY23 Rs in Cr | Profit Q1 FY24 Rs in Cr | % Changes |
| KRBL | 401.6 | 9453.2 | 1413.65 | 164.45 | 194.65 | 18% |
| L T Foods | 167.8 | 5826.9 | 1778.08 | 95.17 | 137.44 | 44% |
| Emami | 514.8 | 22710.39 | 825.66 | 72.69 | 136.75 | 88% |
| Zydus Wellness | 1615 | 10276.6 | 702.1 | 137 | 110.4 | -19% |
| Gillette India | 5477.9 | 17852.48 | 619.07 | 69.31 | 102.7 | 48% |
| Jyothy Labs | 336 | 12338.17 | 687.1 | 47.73 | 96.25 | 102% |
| Hatsun Agro | 1193.9 | 26593.97 | 2150.64 | 51.95 | 80.16 | 54% |
| Galaxy Surfact. | 2692.75 | 9547.08 | 941.77 | 100.37 | 75.18 | -25% |
| Bikaji Foods | 478 | 11950.98 | 477.4 | 17.83 | 44.73 | 151% |
| Mrs Bectors | 1048.5 | 6167 | 374.16 | 12.73 | 34.85 | 174% |
| Hindustan Foods | 539.8 | 6085.89 | 619.25 | 14.89 | 23.37 |
57% |
If we observe the data above, KRBL Ltd tops the list in achieving the highest net profit reported by the company in Q1 FY24 among these companies. However, when checking the profit growth, it is not impressive, with a mere 18% growth YoY.
In terms of profit growth YoY, Mrs Bector has won the game by achieving an impressive 174% profit growth in Q1 FY24. Meanwhile, Bikaji Foods and Jyothi Labs have also shown significant growth in their profitability during the same period.
