Godrej Consumer expects mid single-digit sales growth in Q1 of FY21

Growth will be driven by higher volumes, says company

Godrej Consumer Products (GCPL) on Monday said in its quarterly update that it expected to post mid single-digit sales growth in the April-June period (Q1) in India, driven by higher volumes. The India business contributes 55 per cent to GCPL's overall revenue.

The maker of Cinthol soaps and GoodKnight mosquito repellents said it saw the impact of the national lockdown in the early part of Q1 in India, but added that it ramped up production quickly and resolved logistical challenges.

"We also leveraged technology, strong relationships with our channel partners and were agile with feet on ground to meet the consumer demand," the company said, despite demand trends being mixed across categories and geographies.

"In India, resurgence of the household insecticide category continued with strong underlying consumer demand. We did witness strong momentum in the hygiene category. But saw muted demand in hair colour and air freshener, which were temporarily impacted by the lockdown," the company said. 

In Godrej Africa, USA, Middle East (GAUM), GCPL said sales could decline sharply, as most of the key countries were in standstill mode in April and early May resulting in sales loss.

In Indonesia, the company said that despite disruptions caused by Covid-19, it expected close to mid single-digit constant currency sales growth.

"We are witnessing strong demand in the household insecticide category and strong traction in the hygiene category in Indonesia," the firm said. Indonesia is one of GCPL's largest international markets.

At a consolidated level, the company said that absolute sales would be marginally lower compared to the base quarter.