The note ban has hit the consumer goods and thus, the results for the December quarter has been disappointing. Around 3.2 lakh crore of domestic Fast Moving Consumer goods (FMCG) has received the main jolt, with Hindustan Unilever (HUL) showing a fall in the growth to the tune of four percent. However, the same has been offset through good recoveries affected during the period under review.
Earnings Before Tax (EBIT), Tax, Depreciation, and amortization have shown a decrease to the tune of five per cent. Reduced revenue and margin have shown a negative trend. Demonetizaiton has been instrumental in bringing down the growth, temporarily, and it was not possible to ascertain as to the period upto which the downward trend will continue.
Also other consumer goods industries like Bajaj Crop, Joti Laboratories, Procter and Gamble, ITC, Colgate Palmolive have come out with a reduced margin and revenue in their business during the December quarter.