InvestorQ : Is ITC likely to see pressure on demand for the coming quarters?
rhea Babu made post

Is ITC likely to see pressure on demand for the coming quarters?

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Riya Dwivedi answered.
5 months ago
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One of the reasons for the pressure on FMCG companies is that there is likely to be pressure on rural and urban demand. This has just been borne out by recent statements coming from the CEO of ITC. The CEO of the company has raised concerns over the timing and shape of India’s economic recovery trajectory, especially after the impact of COVID 2.0 on consumer demand. The impact is likely to make a dent on rural and urban demand.

ITC has pointed out that, specifically urban recovery could be muted as compared to the rapid recovery in the first wave. More importantly, the wider spread of the COVID 2.0 in rural India in the second round could impact rural demand for FMCG products. ITC expects rural demand in FY22 to lag FY21. ITC noted that the urban led recovery could be negatively impacted due to rising healthcare costs as well as conservatism in spending.

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