Godrej Consumer Products Ltd - Quarterly Update for 3QFY23

During the quarter, the Indian FMCG sector witnessed slow growth driven by poor rural consumption and a slowdown post the festive season. However, despite the demand softness in India, we expect to deliver double-digit sales growth backed by low single-digit volume growth. There has also been a sequential improvement from high single-digit sales growth and mid single-digit volume decline in the previous quarter. The growth is broad based and led by around double-digit sales growth in both Home Care and Personal Care.

Our Indonesia business has started to see gradual recovery in performance, with constant currency sales decline in low single digits. However, growth ex-Hygiene, is marginally positive.

Godrej Africa, USA, and Middle East (GAUM) continues its strong sales growth momentum, clocking double-digit sales growth in constant currency terms.

At a consolidated level, we expect to deliver sales growth in mid-teens in constant currency terms and around double-digit in INR terms with flattish volumes. The growths have sequentially improved from mid-to-high single digit sales growth and mid-single digit volume decline in the previous quarters.

The quality of our profits should see meaningful improvement, led by Gross Margin recovery and continued marketing investments translating to high single-digit EBITDA growth.

This update provides an overall summary of the operating performance and demand trends during the quarter ended December 31, 2022. This will be followed by a detailed performance update, post the approval of the 3QFY23 financial results by the Board of Directors.

Shares of Godrej Consumer Products Limited was last trading in BSE at Rs. 888.55 as compared to the previous close of Rs. 892.80. The total number of shares traded during the day was 17354 in over 1546 trades.

The stock hit an intraday high of Rs. 902.00 and intraday low of 885.10. The net turnover during the day was Rs. 15542395.00.

Source : Equity Bulls

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GodrejConsumerProducts INE102D01028 QuarterlyUpdate Q3FY23