Street awaiting Godrej Consumer Products' Africa business recovery

Domestic business grew 5% in the June quarter; the fall in Africa biz was 22%

Not only was Godrej Consumer Products’ (GCPL’s) June 2020 quarter’s (Q1) pre-tax profit better than Street expectations, its India business reported 5 per cent year-on-year (YoY) growth, compared to 18 per cent fall in the Q4 of 2019-20 (FY20). The strong demand for household insecticides and hygiene segments led to 3 per cent growth in domestic volume.

On a consolidated basis, GCPL’s profit before tax and exceptional items grew 5.8 per cent YoY to Rs 396.4 crore versus expectations of Rs 391.9 crore, according to Bloomberg consensus estimates. However, its consolidated revenue was down 0.9 per cent YoY to Rs 2,327.3