5 key themes that we saw across Q1
More than 1000 companies have reported their Q1 FY24 results! Here are 5 interesting themes that stood out for us!
A supply glut in Agrichemicals
Driven by a glut in Chinese supply and a channel level destocking - Indian agrichemical players saw a revenue decline and a stronger margin contraction off 5-25% lower realization across products. Managements have guided for an improvement from H2 FY24.
Recovery in top Diagnostics
Last year saw market fear around the loss of market share and pricing pressure due to new competition. Top diagnostic players pushed that aside with price increases across 50%+ of their portfolio driving a 2-3% realization increase paired with high single-digit patient growths and steady operating margins.
Strong duopolistic aviation economics
The weakening of large competitors helped the aviation market leader grow rev/seat km 9% even as costs compressed 18%. It was still able to see a 9ppt increase in load factors seeing extremely robust EBITDAR margins of 31%
Emerging luxury consumption
Luxury consumption and investment demand showed a strong growth trajectory across categories, even as rural and Tier 2 growth remained dented. The high pricing power and economic cycle agnostic demand is making this an interesting category!
Volume growth pressure on larger Consumers
Large consumer biz faced vol pressure, doubly so in rural and tier 2. Competitive stress emerged even in large categories like detergents and tea where smaller comp took market share. A&P spending will increase across the board in the coming months.
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