Godrej Consumer share price gains over 11.5% to touch new all-time high
Shares of Godrej Consumer Products, a leading FMCG maker, jumped 11.70% in today’s early trade to hit a fresh all-time high of ₹1299.90 apiece. This sharp uptick in shares was in response to the company’s December quarter performance, which came in line with analyst estimates.
The company released its financial results post market hours on Wednesday, reporting a 6.41% improvement in its consolidated net profit at ₹581 crore in Q3FY24 from ₹546 crore reported in the same period last year, led by strong volume growth in Indian business.
The consolidated volume exhibited 8% growth, while revenue faced a 2% increase in INR terms, impacted by devaluation. However, in constant currency terms, there was a robust 19% year-on-year growth.
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The India business segment saw a notable 12% increase in volume, accompanied by a 9% year-on-year growth in sales. In Indonesia, volume and sales grew by 9% and 8% in INR terms, respectively, and 7% in constant currency terms year-on-year.
Africa, USA, and the Middle East experienced an 8% decline in sales in INR terms but showed a commendable 14% growth in constant currency terms year-on-year. In Latin America and SAARC, sales witnessed a 45% decline in INR terms yet registered a substantial 181% growth in constant currency terms year-on-year.
The consolidated EBITDA demonstrated a robust 16% year-on-year growth in the third quarter of FY 2024, reaching ₹841 crore.
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In Indian business, the home care segment exhibited 5% revenue growth, with household insecticides maintaining stable low-single-digit volume growth. The company-initiated efforts to turn around household insecticides, launching Goodknight Agarbatti in January, with additional actions in the pipeline.
Goodknight Agarbatti is India’s only government-registered active-based anti-mosquito Agarbatti, the company said in its earnings report.
The Agarbatti employs a new molecule, RNF, claimed to be close to 2x more effective than most other molecules used in India, with GCPL holding exclusivity for its use in the medium term, according to the company.
“The new Renofluthrin (RNF) molecule by GCPL, currently introduced in incense stick format (to be introduced in other formats soon), could be disruptive, in our view,” said domestic brokerage firm Nuvama Institutional Equities.
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On the other hand, the company said that its Air Fresheners continue to consistently deliver double-digit volume growth. Aer continues to gain share and enjoy market leadership. Air fresheners have close to double their salience over the last two years. Fabric Care delivered strong double-digit volume growth. Genteel and Ezee continue to deliver steady performances.
Following the company’s Q3 numbers, Nuvama revised its target price on Godrej Consumer Products to ₹1,325 apiece from earlier price of ₹1,250 apiece.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
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Published: 01 Feb 2024, 10:48 AM IST
