Godrej Consumer Products advanced 2.73% to Rs 912.80 after the FMCG company said that despite the demand softness in India, it expects to deliver double-digit sales growth backed by low single-digit volume growth in Q3 FY23.
During the quarter, the Indian FMCG sector witnessed slow growth driven by poor rural consumption and a slowdown post the festive season. 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.
Indonesia business has started to see 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) continues its strong sales growth momentum, clocking double-digit sales growth in constant currency terms.
At a consolidated level, the FMCG company expect to deliver sales growth in mid-teens in constant currency terms and around double-digit in Rs terms with flattish volumes.
Godrej Consumer said 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.
Godrej Consumer Products is an Indian consumer goods company. The company's products include soap, hair colorants, toiletries and liquid detergents.
The company's consolidated net profit declined 25.1% to Rs 358.86 crore despite of 7% rise in net sales to Rs 3,364.45 crore in Q2 FY23 over Q2 FY22.
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