Godrej Consumer Products rose 1.21% to Rs 696 after reporting business update for Q3 December 2019.
Godrej Consumer Products announced on Monday that in Q3 December 2019, it witnessed relatively mixed demand across some of its geographies of operations.In India, demand continued to be challenging, impacted by a general consumption slowdown. Despite weak demand conditions, the company continued marginally higher than mid single digit volume growth trend during the quarter. The uplift in volume growth was led by gradual recovery in household insecticides, new product launches, effective marketing campaigns and tactical consumer offers.
The sales value growth also mirrored the trend of past few quarter's sales value growth. The company assured a gradual improvement in consumer demand in the quarters ahead driven by good monsoon and government stimuli, the company said in a statement.
In Indonesia, the company recorded close to high single digit constant currency sales growths, amidst an improving demand environment in home and personal care space. The growths are driven by new product launches and gradual expansion of general trade distribution.
In GAUM (Godrej Africa, USA, Middle East), the company saw a good recovery with higher than mid single digit constant currency sales growth, thus reversing the trend of the past few quarters. The performance was driven by improved efficiency in South Africa and Rest of Africa & Middle East cluster.
Within the "others" geographies, the performance in Latin America is expected to be strong in constant currency terms. However, in rupee terms due to currency depreciation in Argentina, the firm expects the performance to be muted. Performance in SAARC countries was robust, it added.
The stock trades above its 20 days simple moving average, but below its 50 days moving average placed at 681.85 and 703.51 respectively. These levels will act as crucial support and resistance levels in near term.
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Godrej Consumer Products is engaged in the manufacture of personal and household care products. The firm's geographic segments include India as well as overseas. It offers hair care products.
On consolidated basis, company's net profit fell 28.36% to Rs 413.88 crore on 1.32% decline in net sales to Rs 2,608.15 crore in Q2 September 2019 over Q2 September 2018. The company posted a one-time gain of Rs 259.72 crore in the second quarter last financial year due to the divestment of its UK business during the period. Excluding exceptional and one-off items, net profit grew 11% year-on-year to Rs 384 crore in Q2 September 2019.
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