Godrej Consumer Products Ltd - Quarterly Update: 1Q FY24

In India, overall consumer demand remained steady as seen in the previous few quarters. Our organic business continued to deliver robust performance with double-digit volume growth. This is in line with our strategy of volume driven category development. The performance was broad based with double-digit volume growth in Home Care and higher than mid-single digit volume growth in Personal Care. Sales growth was marginally higher than mid-single digit as we passed on the benefits of lower input costs to our consumers. Sales growth (incl. inorganic) to be in high-single digits.

Our Indonesia business delivered steady performance on the back of structural changes implemented last year. Constant currency sales is expected to grow in mid-teens.

Godrej Africa, USA, and Middle East (GAUM) continued to deliver consistent performance with constant currency sales growth in mid-teens. However, in INR terms, there was an adverse currency translation impact resulting in high-single digit sales growth.

At a consolidated level (organic), we expect to deliver high-single digit volume growth, teens growth in constant currency terms translating to close to double-digit sales growth in INR terms. Sales growth (incl. inorganic) to be in double digits. Our quality of profits has seen sustained improvement, led by robust gross margin expansion and ongoing category development investments. This should translate to strong EBITDA growth.

We expect to have an exceptional stamp duty expense on slump sale transaction of Park Avenue and KamaSutra brand acquisition.

This update provides an overall summary of the operating performance and demand trends during the quarter ended June 30, 2023. This will be followed by a detailed performance update, post the approval of the 1Q FY24 financial results by the Board of Directors.

Shares of Godrej Consumer Products Limited was last trading in BSE at Rs. 1062.60 as compared to the previous close of Rs. 1061.00. The total number of shares traded during the day was 17750 in over 1597 trades.

The stock hit an intraday high of Rs. 1070.30 and intraday low of 1052.05. The net turnover during the day was Rs. 18876375.00.

Source : Equity Bulls

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GodrejConsumerProducts INE102D01028 Q1FY24 QuarterlyUpdate