1. Godrej Consumer shares tank 4% on subdued Q3 update; Stock Market LIVE Updates

Godrej Consumer shares tank 4% on subdued Q3 update; Stock Market LIVE Updates


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5 mins   •   Updated: January 8, 2024, 11:54 AM

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Godrej Consumer shares tank 4% on subdued Q3 update; Stock Market LIVE Updates

Summary

Shares of the soap-to-insecticide maker are down 4% today after reporting subdued Q3 numbers.

  1. Godrej Consumer shares tank 4% on subdued Q3 update; Stock Market LIVE Updates

    Shares of the soap-to-insecticide maker are down 4% today.

    This comes after the management said that it expects a low single digit sales decline in rupee terms in the December quarter. It attributed this to forex and hyperinflation accounting impact. Despite this and significantly higher category development investments, the company’s profitability has improved in Q3FY24 on a year-on-year basis.

    It added that in India, the operating environment continues to remain similar to Q2. “Despite this, our organic business delivered steady underlying volume growth of mid-single digit. Growth was broad-based across both Home Care and Personal Care,” said the management in the filing.

    Godrej Consumer’s recently acquired Park Avenue and KamaSutra brands continued to perform well and are on track to achieve their full-year target. “Reported volume growth continues to be double digit,” said the management.

    The company’s Indonesia business continued to deliver robust performance, with close to double digit volume growth and high-single digit constant currency sales growth.

    However, the GAUM (Godrej Africa, USA, and Middle East) business witnessed a flattish to mild decline in volume growth. “This was driven by trade destocking in geographies that we plan to restructure in Q4. Although it sustained double-digit constant currency sales growth, the impact of the Naira devaluation will result in high-single digit sales decline,” said the management.

    It also added that LATAM (Latin America) business revenue has been severely impacted on account of the sharp devaluation in Argentinian Peso from 361 to 808 which is due to hyperinflation accounting.

    January 8, 2024 11:54 AM