Godrej Consumer Products Ltd - Quarterly Update - Q4 FY24

This update provides an overall summary of the operating performance and demand trends during the quarter ended March 31, 2024. This will be followed by a detailed performance update, post the approval of the 4Q FY24 financial results by the Board of Directors.

Operating conditions in India continue to remain subdued. Our India organic business continued to deliver strong underlying volume growth at high-single digit with growth being broad-based across both Home Care and Personal Care. While demand in Household Insecticides has been subdued due to an extended winter in the North and East, our GoodKnight Agarbatti launch was well received by consumers. Park Avenue and KamaSutra brands delivered in-line with category seasonality. Reported underlying volume growth continue to be in double-digit.

Indonesia business continues to consistently deliver strong performance with doubledigit volume growth and sales growth. The GAUM (Godrej Africa, USA, and Middle East) organic business delivered high single digit volume growth along with double-digit constant currency sales growth. However, due to Naira devaluation in January, sales in INR terms will see double-digit decline.

At a Consolidated level (organic), we expect to deliver underlying volume growth of high single digit and sales growth of mid-single digit driven largely by currency volatility. EBITDA (incl. forex) margin continues to expand year-on-year despite increased media investments. Reported underlying volume growth is expected to be in double-digit.

Update on East Africa Re-organisation: The transaction has been largely completed as of 31st March 2024. In Q4, we expect the impact on revenue of ~Rs. 70 crores. Any potential charge on account of impairment testing of GAUM CGU and other one-time accounting assessments will be concluded in Q4FY24. The impact of re-organisation is likely to be positive on cash flows.

Shares of Godrej Consumer Products Limited was last trading in BSE at Rs. 1209.35 as compared to the previous close of Rs. 1176.80. The total number of shares traded during the day was 35967 in over 3210 trades.

The stock hit an intraday high of Rs. 1216.05 and intraday low of 1176.00. The net turnover during the day was Rs. 43097337.00.

Source : Equity Bulls

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GodrejConsumerProducts INE102D01028 KeyUpdates Q4FY24