Godrej Consumer Products Ltd - Quarterly Update for 3QFY22

Godrej Consumer Products Ltd has provided an update with overall summary of the operating performance and demand trends during the quarter ended 31st December, 2021. This will be followed by a detailed performance update, post the approval of the 3QFY22 financial results by the Board of Directors.

Some of the short term challenges that our MD & CEO, Sudhir Sitapati highlighted in the recent Analyst Meet have played out during the quarter:

• Unprecedented cost inflation
• Indonesia business performance

This has resulted in:

• Low volume growth and high price growth
• High gross margin dilution and EBITDA margin dilution

In India, we expect to deliver close to high single-digit sales growth, largely driven by pricing. We witnessed broad-based sales growth in both, our Home Care and Personal Care categories.

In Indonesia, we expect a marginal decline in constant currency sales growth. We continue to put building blocks in place to drive category development and general trade distribution expansion, to ensure gradual recovery in the short term.

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 the teens. We continue to focus on driving sustainable, profitable sales growth.

At a consolidated level, we continue to leverage our category and geographic portfolio and expect to deliver close to high single-digit sales growth. We continue to remain on track with our objective of driving double-digit sales growth as seen in the first nine months of the financial year.

On the profitability front, we expect our quality of profits to improve with sequentially expanding gross margins, however, lower on a year-over-year basis due to unprecedented cost inflation. In line with our strategy of driving category development, we had sequentially higher marketing spends. The net result would be a dilution in operating margins during the quarter, on a year-over-year basis.

Shares of Godrej Consumer Products Limited was last trading in BSE at Rs. 948.40 as compared to the previous close of Rs. 953.60. The total number of shares traded during the day was 15186 in over 1070 trades.

The stock hit an intraday high of Rs. 955.20 and intraday low of 934.15. The net turnover during the day was Rs. 14375359.00.

Source : Equity Bulls

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GodrejConsumerProducts INE102D01028 GODREJCP QuarterlyUpdate Q3FY22 BusinessUpdate