Consumer Discretionary Q3 Results Preview

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We present Q3 FY23 estimates for our consumer discretionary universe [sub-sectors covered: paints, alcoholic-beverages sector and quick service restaurant]. We continue to highlight three-year compound annual growth rate in our estimates for most of our growth comparisons to make better sense till the Covid impact comes into the base.

Growth in our consumer discretionary coverage is expected to lag behind that of consumer fast moving consumer goods coverage in Q3 FY23. We expect overall revenue of our consumer discretionary coverage universe to grow by 2.9% YoY in Q3 FY23, driven by QSR companies (22.1% YoY growth), followed by paint companies (3.2% YoY growth).

Overall operating margin performance across companies is expected to be divergent.

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