Mumbai, Jan 9 (PTI) Fast moving consumer goods (FMCG)players, who have been benched for the past two years, areexpected to see a revenue growth of 14.8 per cent in theDecember quarter despite flat margins, says a report.The optimism comes from improved consumer sentiment,and gradual rise in rural demand, says a report by report bydomestic brokerage ICICI Securities.In the September quarter, the sector clipped at a low5.2 per cent."We believe the acceleration in revenue growth islargely attributable to a pick-up in consumer sentiment,gradual demand pick-up in rural areas and also due to a lowerbase," the report said today.But the brokerage expects gross margins to remain flatwith an expected 160 bps rise due to operating leveragebenefits and lower other expenditure. We expect post-taxprofit to jump 29 per cent," it noted.The key things to watch out for this quarter will bevolume growth and pre-tax profit growth.After the re-stocking in the September quarter, thetrade inventory is perceived to be largely normalized andcompanies with higher focus on direct distribution continue tooutperform against the others who have higher dependence onwholesale and CSD channel, the report noted.Also, the shift from unorganised to organised will benefit although the same has been gradual and will happen over a period of time.

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