“During the quarter, the Indian FMCG sector witnessed slow growth driven by poor rural consumption and a slowdown post the festive season. However, despite the demand softness in India, we expect to deliver double-digit sales growth backed by low single-digit volume growth,”
said in a BSE filing.
“There has also been a sequential improvement from high single-digit sales growth and mid-single-digit volume decline in the previous quarter. The growth is broad-based and led by around double-digit sales growth in both home care and personal care ,” it added.
The company stated that the quality of its profits should see meaningful improvement, led by gross margin recovery and continued marketing investments translating to high single-digit EBITDA growth.
“At a consolidated level, we expect to deliver sales growth in the mid-teens in constant currency terms and around double-digit in INR terms with flattish volumes. Growths have sequentially improved from mid-to-high single-digit sales growth and mid -single-digit volume decline in the previous quarters,” the company said.
“Our Indonesia business has started to see a gradual recovery in performance, with constant currency sales decline in low single digits. However, growth ex-hygiene is marginally positive. Godrej Africa, USA, and Middle East (GAUM) continue its strong sales growth momentum, clocking double-digit sales growth in constant currency terms,” it said.
At 1.54 pm, the scrip was trading 2.4% higher at Rs 910 over its last day’s closing price of Rs 888.5 per share. The stock has surged about 10% in the last six months. However, it has declined about 5% in the last one year. In Q2FY23, reported a decline of 25.06% in consolidated net profit at Rs 358.86 crore. It had posted a net profit of Rs 478.89 crore in the July-September quarter a year ago.
The revenue from the sale of products of the group’s FMCG arm was up 7% at Rs 3,364.45 crore during Q2FY23, as against Rs 3,143.61 crore in the corresponding period last fiscal year.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
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