Godrej Consumer Products Ltd - Quarterly Update: 2QFY22

Godrej Consumer Products Ltd has provided an overall summary of the operating performance and demand trends during the quarter ended 30 September, 2021. This will be followed by a detailed performance update, post the approval of the 2QFY22 financial results by the Board of Directors. During the quarter, demand trends in our categories across the key countries we operate in remained steady.

In India, we expect close to a double-digit sales growth, driven largely by volume growth and calibrated price increases. We expect our 2-year CAGR to be in the double digits. We witnessed broad-based sales growth in our Home Care and Personal Care categories.

In Indonesia, we expect a marginal decline in constant currency sales. This is impacted by challenging macroeconomic variables, a gradual recovery in the Air Fresheners category, and high competitive intensity in the Wet Wipes category. We continue to put building blocks in place to ensure gradual recovery, during the course of the year.

In Godrej Africa, USA and Middle East, growth momentum continued across most of our key countries of operations. We expect to deliver constant currency sales growth in mid-teens. Here too, we expect our 2-year CAGR to be in the double digits. We continue our focus on driving sustainable, profitable sales growth.

We expect sales growth in our Latin America and SAARC businesses to be soft.

At a consolidated level, we continue to leverage our category and geographic portfolio well and expect to deliver high single-digit sales growth with another quarter of double-digit 2-year CAGR. We expect operating margins to contract during the quarter driven by a lag between the rise in input costs and increase in end consumer pricing.

Shares of Godrej Consumer Products Ltd. was last trading in BSE at Rs. 1047 as compared to the previous close of Rs. 1029.75. The total number of shares traded during the day was 60866 in over 3468 trades.

The stock hit an intraday high of Rs. 1048.4 and intraday low of 1017.5. The net turnover during the day was Rs. 63332171.

Source : Equity Bulls

Keywords