IN : Consumer Staples - Overall - 4QFY21F Preview

Sustained demand from rural markets, improving consumer sentiments and normalisation of distribution channels are likely to drive sector’s sales growth. Companies have hiked prices to pass on the increase in input prices. We expect price hikes and prudent cost management to drive EBITDA margins. We expect our coverage universe to report sales/EBITDA/PAT growth of 32.8%/40.1%/37.4% yoy, respectively, in 4QFY21F.