Godrej Consumer Products Ltd - Quarterly Update - 3Q FY24

This update provides an overall summary of the operating performance and demand trends during the quarter ended December 31, 2023. This will be followed by a detailed performance update, post the approval of the 3Q FY24 financial results by the Board of Directors.

In India, the operating environment continues to remain similar to Q2. Despite this, our organic business delivered steady underlying volume growth of mid-single digit. Growth was broad-based across both Home Care and Personal Care. Park Avenue and KamaSutra brands continue to perform well and are on track to achieve full-year ambition. Reported volume growth continues to be double digit.

Our Indonesia business continues to deliver compelling performance, with close to double digit volume growth and high-single digit constant currency sales growth.

The GAUM (Godrej Africa, USA, and Middle East) business had flattish to mild decline in volume growth. This was driven by trade destocking in geographies that we plan to restructure in Q4. Although it sustained double-digit constant currency sales growth, the impact of the Naira devaluation will result in high-single digit sales decline.

LATAM business revenue has been severely impacted on account of the sharp devaluation in Argentinian Peso from 361 to 808 which due to hyperinflation accounting has impacted nine months of revenue. This is likely to have a negative impact of mid-single digit on the consolidated sales. However, the impact on profit is minimal. Despite the challenging environment, the LATAM business continues to deliver positive volume growth.

At a Consolidated level (organic), we expect to deliver mid-single digit volume growth, double-digit constant currency sales growth but low-single digit sales decline in INR terms due to GAUM and LATAM currency and hyperinflation accounting impact. Reported volume growth is likely at high-single digit and reported sales growth to be flattish in INR terms.

We continue to drive year-on-year expansion in EBITDA (incl. Forex) margin despite significantly higher category development investments.

Shares of Godrej Consumer Products Limited was last trading in BSE at Rs. 1219.85 as compared to the previous close of Rs. 1202.00. The total number of shares traded during the day was 96500 in over 4380 trades.

The stock hit an intraday high of Rs. 1229.95 and intraday low of 1185.60. The net turnover during the day was Rs. 117609421.00.

Source : Equity Bulls

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GodrejConsumerProducts INE102D01028 QuarterlyUpdate Q3FY24