Consumer Discretionary Q1 Review - Strong Growth Delivered; Margin Improvement In-Line With Our Expectations: Nirmal Bang


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Through this update, we take a review of the Q1 FY23 performance of our consumer discretionary universe (sub-sectors covered: paints, alcohol-beverage and quick service restaurant) versus our estimates.

The overall accelerated demand momentum seen in the last couple of quarters in the consumer discretionary sector was maintained in Q1 FY23 as well on expected lines, with some variations across few companies.

Revenue of our consumer discretionary coverage companies grew by 58.6% YoY in Q1 FY23 (three-year compound annual growth rate of 12.7%) on a relatively lower base of Q1 FY22, once again led by paint companies where the volume growth continuous to remain strong, supported by better realisations (led by price hikes taken over the last 14 months till the end of Q1 FY23).

Our alco-bev coverage companies posted a growth of 68.5% YoY. Revenue for the QSR sector grew by 64.2% YoY, driven by solid sequential improvement in the dine-in channel.

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