Key Points
They have not specified anything much on the mixed improvement on the studded part, but I believe that considering the decline in the diamond prices and the significant increase in the gold prices, there might be some kind of increase in the studded jewellery mix, considering the demand or the trend has been seen that there is an uptick in demand for the studded jewellery...
However, more on the mix front and also how the demand is shaping up considering the gold prices going up substantially in the past few days, so whether it will have any impact on the retail jewellery sales considering the wedding season is expected to continue till February and March is something which will be keenly monitored by the Street..
Kaustubh Pawaskar: The sluggish demand environment is mainly because rural is yet to revive and if the government comes up with a plan to revive the rural demand in form of more perks coming into the rural market and we believe that since it is election year, we might see the government focusing on reviving the rural economy, that might augur well for the FMCG companies...
The benefits should start coming in the quarters ahead and if all goes well, monsoons turn out to be better, then it should help in revival in the rural demand and that will help the overall volume growth momentum to improve for the FMCG companies...
Barring that, urban consumption is quite strong, their entry into premium categories are doing well and the medium to long term outlook for the FMCG companies remain strong and we should expect the margin expansion to continue till the time raw material prices remain benign and that should support to the overall earnings growth in the coming quarters...
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