Godrej Consumer Products shares in focus after Q4 business update states it is 'largely on track'

Shares of Godrej Consumer Products declined after the FMCG firm posted its update for the fourth quarter on Sunday, April 6.

It said the management's focus for the March quarter remained on reviving the standalone underlying volume growth (UVG) trajectory, holding the standalone EBITDA margin despite cost pressure, and maintaining the trajectory in the international business. "We remain largely on track to achieve across all the stated objectives," it said.

Without mentioning any numbers, the company said its standalone UVG is expected to be "mid-single digits" and revenue growth is to be "high single digits". The same has been driven by a "mid-teens UVG in home care" and a "mid-single digit decline in personal care".

The FMCG firm said the personal care segment continues to go through a price-volume rebalancing on account of rising input costs. EBITDA margin are likely to be in a similar range as the December quarter, despite higher inflation in palm and related derivatives, the company said.

The international businesses continue to do well on their relevant strategic objectives, it added.

The company is estimating its Indonesia business to deliver "mid-single digit UVG and low-single digit revenue growth".

"In line with our guidance, the Godrej Africa, USA, and Middle East (GAUM) organic business is likely to deliver strong double digit organic UVG and revenue growth. We continue to do well on our profitability," the company said.

At a consolidated (organic level), it estimates "high-single digit INR sales growth and mid-single digit UVG."

Shares of Godrej Consumer Products were down 0.94% at ₹1,145.7 apiece. The stock has gained nearly 10% in the past month.

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