Consumerism on the rise again, show latest corporate business updates

Consumer spending is inching towards the pre-pandemic level according to the second quarter business updates by companies including Marico, Godrej Consumer Products, Titan Company and HDFC Bank. The demand revival is driven by falling Covid caseload and rising vaccination in the country.

Titan’s jewellery, watch, and eye segments grew by 74-78% year-on-year reaching either near or above the pre-pandemic levels. According to the management, the pent-up demand triggered by the second Covid wave during the first quarter boosted gift purchases, occasion buying, and investment in gold in the second quarter. The plain jewellery segment reported a stronger growth than the studded segment. In addition, the enrollment for the Golden Harvest scheme crossed the pre-pandemic level.

Marico said that its India revenue growth will be in the low twenties with volume growth will be close to double digits on a two-year annualised basis. Parachute coconut oil delivered 5-7% volume growth in line with medium term aspiration. The company’s food division continues to grow and is on course to reach Rs 500 crore in revenue this fiscal year.

Godrej Consumer expects close to double digit sales growth driven by volume and calibrated price increase. Analysts expect 7% growth for household insecticides, 13% increase for soaps and 18% growth for the hair colour products.

For HDFC Bank, retail loans grew by 13% in the September quarter compared with 5.5% growth in the previous quarter. By similar comparison, the newly carved segment of commercial and rural banking grew by 27.5% compared with the 7.5% growth. The bank’s sectoral credit data showed a strong pick up in unsecured loans after the unlocking at the end of the second wave.