Godrej Consumer Products Limited - Quarterly Update: 4Q FY23

In India, consumer demand trends remained steady through the quarter, with FMCG sector expected to witness gradual recovery in growth rates. The performance of our India business has exceeded expectations especially on the volume front. We expect to deliver double-digit volume and value growth. Our domestic branded business growth was very strong registering volume and value growth in teens. This is in line with our strategy of volume driven category development. Overall, the growth was broad based and led by double-digit volume and value growth in both Home Care and Personal Care.

Our Indonesia business has started to see gradual recovery in performance with mid-single digit constant currency sales growth. The growth ex-Hygiene is close to double digits. We believe building blocks in Indonesia are in place to drive steady-to-strong performance in the next fiscal year.

Godrej Africa, USA, and Middle East (GAUM) witnessed a temporary pause in its strong double-digit sales growth momentum, clocking higher than mid-single digit sales growth in constant currency terms. This was due to elections and the impact of demonetisation in Nigeria. However, we have seen a strong sales recovery in March.

At a consolidated level, we expect to deliver double-digit growth in INR terms led by midsingle digit volume growth. The growth trends continue to improve sequentially. The quality of our profits should see improvement, led by Gross Margin recovery and continued marketing investments translating to strong double-digit EBITDA growth.

This update provides an overall summary of the operating performance and demand trends during the quarter ended March 31, 2023. This will be followed by a detailed performance update, post the approval of the 4Q FY23 financial results by the Board of Directors.

Shares of Godrej Consumer Products Limited was last trading in BSE at Rs. 964.60 as compared to the previous close of Rs. 968.35. The total number of shares traded during the day was 28095 in over 2338 trades.

The stock hit an intraday high of Rs. 969.15 and intraday low of 944.90. The net turnover during the day was Rs. 26866997.00.

Source : Equity Bulls

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GodrejConsumerProducts INE102D01028 BusinessUpdate Q4FY23