Godrej Consumer Products rose 2.20% to Rs 674.65 after the company provided an overall summary of the operating performance and demand trends witnessed during the quarter ended 30 September 2019.
The company said that during the quarter it witnessed relatively mixed demand across its geographies of operations. In India, demand continued to be challenging, impacted by a general consumption slowdown. Despite sluggish demand conditions, the firm recorded higher than mid-single digit volume growth. The uplift in volume growth was led by recovery in household insecticides, new product launches, effective marketing campaigns and tactical consumer offers. The sales value growth will be very close to the last quarter's sales value growth.The company added that it looks forward to a gradual improvement in consumer demand in the quarters ahead, aided by a good monsoon and government efforts to stimulate the economy. In Indonesia, the firm recorded low double digit constant currency sales growth, driven by new product launches and several go-to-market initiatives. In GAUM (Godrej Africa, USA, Middle East), the company recorded a low single digit decline in constant currency sales growth. The performance was impacted by downtrading in hair extensions and adverse macros in few countries, thus resulting in mixed performance across the sub clusters. The company continues to drive scale up of wet hair care and the relaunch of Darling brand in dry hair category along with expansion in distribution to deliver profitable sales growth for the full year.
Within the 'others' geographies, in Latin America, despite currency depreciation in Argentina, volume and value growth have been robust. In INR terms also, the firm expects Latam to have robust value growth. Q2 September 2019 will be the last quarter with the UK business in the base quarter for close to two months of the operations. The announcement was made during market hours today, 4 October 2019.
Shares of Godrej Consumer Products fell 4.56% in the past three trading sessions to settle at Rs 660.15 yesterday, 3 October 2019, from its close of Rs 691.75 on 27 September 2019.
Meanwhile, the S&P BSE Sensex was up 232 points or 0.61% to 38,338.47.
On the BSE, 26,419 shares were traded in the counter so far compared with average daily volumes of 47,212 shares in the past two weeks. The stock hit an intraday high of Rs 686 and an intraday low of Rs 658 so far during the day.
The stock hit a 52-week high of Rs 848.30 on 19 December 2018. The stock hit a 52-week low of Rs 577 on 4 September 2019.
Godrej Consumer Products' consolidated net profit fell 0.6% to Rs 407.38 crore on 4.9% decline in net sales to Rs 2,330.59 crore in Q1 June 2019 compared with Q1 June 2018.
Godrej Consumer Products is engaged in the manufacture of personal and household care products.
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