Godrej Consumer Products Ltd - Quarterly Update: Q2 FY25

This update provides an overall summary of the operating performance and demand trends during the quarter ended September 30, 2024. This will be followed by a detailed performance update, post the approval of the Q2 FY25 financial results by the Board of Directors.

As outlined at our Annual Investor Meet (May 2024), Management focus remains on three key areas for FY25: high-single digit Standalone UVG*, high-single digit Indonesia UVG* and mid-teens Consolidated EBITDA growth. We are largely on track to achieve the Standalone and Indonesia UVG* targets. However, our Consolidated EBITDA growth will be lower due to operating conditions in India being tough on cost and margin driven by inflation in palm and other competitive pressures. Palm input costs have been rising since March and have risen in high teens as of date. Management has decided not to pass on the entire cost hike to consumers in one step and have decided to continue investments on the long-term growth initiatives like rural van program, new category development etc. As a result, the Standalone EBITDA growth will be flattish. In terms of top line, Standalone business is expected to perform well with high single digit underlying volume and value growth.

Our international businesses continue to do well on their relevant strategic objectives.

Indonesia business is expected deliver continued robust performance with high-single digit volume growth and double-digit sales growth in constant currency.

In line with our earlier guidance, the GAUM (Godrej Africa, USA, and Middle East) organic business is expected to see single digit volume decline due to reduction in trade stocks and portfolio simplification. However, offtakes continue to be strong. As shared earlier, the currency unification in Nigeria continues to negatively impact our INR sales performance. Despite this, we have grown EBITDA (reported) in INR terms at strong double-digit. This will be the third consecutive quarter of healthy INR profit growth along with a significant improvement in margin.

At a Consolidated (organic) level, we expect mid-single digit INR sales growth, low-teens constant currency sales growth and mid-single digit EBITDA (reported) growth.

Shares of Godrej Consumer Products Limited was last trading in BSE at Rs. 1330.50 as compared to the previous close of Rs. 1343.40. The total number of shares traded during the day was 17516 in over 1919 trades.

The stock hit an intraday high of Rs. 1354.95 and intraday low of 1320.55. The net turnover during the day was Rs. 23424315.00.

Source : Equity Bulls

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GodrejConsumerProducts INE102D01028 FMCG QuarterlyUpdate Q2FY2025