Godrej Consumer Q1 Review - Strong Volume Pickup, Robust Margins; Currency Woes Queer The Pitch: Systematix

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Systematix Research Report.Godrej Consumer Products Ltd. reported Q1 FY25 consolidated results below our expectations, mainly due to low revenue (-3% YoY) which led to Ebitda/adjusted profit after tax growth of 13%/18% YoY, while strong operating margin expansion of 310 basis points YoY to 21.7% was in-line with estimates. While consolidated revenue grew 9% YoY in constant currency (11% organic), the reported revenue decline was largely on account of severe currency depreciation across Godrej Africa, US, and Middle East, Indonesia and Latin America/SAARC regions.India business delivered strong volume growth of 8% YoY and revenues +9% YoY (+6% organic). Fabric care and air fresheners saw strong double-digit volume growth, but low-single digit growth was seen in home insecticides (similar to Jyothy Labs’ HI sales +2% YoY) and in soaps (similar to HUL); hair colour was weak (flat volume). While negative pricing in soaps mainly accounted for the volume value gap, Godrej Consumer expects this to normalise in Q2, and expects India growth to pick up to low-double digits by end-FY25, with positive pricing as palm oil firms up. Indonesia volume/ constant currency revenue grew 7%/11% YoY with strong broad-based growth, but currency depreciation reduced reported sales to +3% YoY. Godrej Consumer expects similar volume growth trends in FY25. GAUM revenue declined 23% YoY (CC) mainly due to inventory destocking as part of the distribution overhaul. Godrej Consumer expects channel stock reduction to persist over one-two quarters. .Click on the attachment to read the full report:.Godrej Consumer Q1 Results Review - Inconsistency In Household Insecticides Business Continues: Dolat Capital .DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit. .Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Godrej Consumer Q1 Review - Strong Volume Pickup, Robust Margins; Currency Woes Queer The Pitch: Systematix

The brokerage likes the improving outlook, aggressive innovation, distribution expansion and margin potential, but wait for a better entry point before getting more constructive on the stock.

NDTV Profit

NDTV Profit

Follow Us

DOWNLOAD THE APP

Godrej Consumer Q1 Review - Strong Volume Pickup, Robust Margins; Currency Woes Queer The Pitch: Systematix

The brokerage likes the improving outlook, aggressive innovation, distribution expansion and margin potential, but wait for a better entry point before getting more constructive on the stock.

Choose a plan

Follow Us

DOWNLOAD THE APP