The actual pain area of the business is developed market and RMG in India. Some of the Key abstracts from the concall for better understanding:
Page 6: In the developed markets, the growth what you are seeing has been long awaited. First of all, in developed markets we were degrowing for several quarters. We were dealing with deeply internal issue and sorting them out. We knew we would sort it out because we had a clear action plan. We have to see the growth in that context. This is the growth that we deserved, which belonged to us but had evaded us because of certain issues. We fixed those issues decisively and won it back.
The bad news of CY2023, the subdued quarters of developed markets, will appear as better performance in CY2024 because as we build up from here you will start seeing much bigger year-on-year positive trends for developed markets.
Question on RMG: We have seen some sequential weakness because of RMG to some extent. Is RMG now coming to the base and we will see good growth from here on?
Answer: RMG has impacted us basically in the last two quarters - in Q2 FY2024 and Q3 FY2024. In Q2 FY2024, RMG impacted us in midway because of certain regulatory changes, which impacted the fundamentals of the RMG category and kind of ROI measurement these people do. There was a clear impact and last quarter we quantified it. This quarter the impact was bigger because typically bigger budgets were expected from RMG, but they were holding back. The impact was for the whole quarter Q3 FY2024 versus half the quarter of Q2 FY2024.Once RMG budgets come back, we will be the first company to take them on to a profitable advertising campaign and deliver value for them.
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