AN IMPACT OF COVID-19 ON FINANCIAL PERFORMANCE OF SELECTED FMCG COMPANIES IN INDIA

Abstract

The Covid-19 pandemic caused disruptions in supply chains, leading to difficulties in obtaining raw materials, manufacturing, and distributing goods. These challenges, along with shifts in consumer behaviour and demand patterns, had an impact on the revenue and profitability of FMCG companies. While essential products experienced a surge in demand at the beginning of the pandemic, non-essential items faced decreased demand due to changes in consumer spending habits. FMCG companies also incurred additional costs due to disruptions in the supply chain, safety measures, employee welfare initiatives, and increased marketing and promotional activities. These added expenses placed pressure on profit margins, further affecting the financial performance of the companies. This study examines the financial performance of Godrej Consumer Products Ltd and TATA Consumer Products Ltd before and after the Covid-19 period. The results indicate that Godrej Consumer Products Ltd maintained a relatively stable and consistent financial performance in the post-Covid-19 period, while TATA Consumer Products Ltd experienced a slight decline in various financial ratios. These findings suggest that Godrej Consumer Products Ltd has successfully adapted to the post-Covid-19 environment, whereas TATA Consumer Products Ltd may need to address specific challenges to enhance its financial performance.