Bengaluru: Despite seeing its net profit slip by 1.3% year-on-year (YoY) in FY24, FMCG major ITC Ltd, set for a demerger from its hospitality arm, is banking on a more buoyant economy and markets this fiscal.
As indicated at the time of announcing its annual results in May, the company’s annual report cheered the spying of green shoots of recovery in the rural economy, which was the biggest drag for FMCGs last fiscal. ITC expects the agri-sector schemes to boost consumer demand.
Improvements in the manufacturing and services sector also offers much succour as this would translate into enhanced employment. It also saw a greater capex on infrastructure project further promoting the domestic manufacturing sector.
The annual report noted that there is already an uptick in employment in the country across sectors. All of these augur well for consumption demand in the near term.
This positive outlook is based on India being heralded as one of the fastest growing major economies in the world with significant headroom for growth. A favourable demographic profile, increasing affluence, rapid urbanisation and accelerated digital adoption are key structural drivers of growth, the report pointed out.
The Indian economy is expected to sustain its high growth trajectory in FY25 driven by strong momentum in fixed investments and a pickup in private consumption. This comes on the back of moderation in inflation, improvement in agri terms of trade, a good rabi harvest and normal monsoons.
Published 29 June 2024, 01:46 IST