FMCG firm Godrej Consumer Products will hike product prices in the current quarter (Q4) and in April-June as cost of some raw materials remains high, Chairman Adi Godrej said on Monday.
Most FMCG firms were hit by high input costs over the last one year. Although cost of many raw materials has come down from their peaks, they are still high year-on-year. The rupee depreciation in October-December meant import costs rose and thus negated any softening of raw material prices. Speaking with TV channels post the Godrej Industries' results announcement, Godrej said the company will take some price hikes in the current and the next quarter to offset the input cost increases. Godrej meanwhile expects the rupee, which has risen about 10% so far in 2012, will continue to appreciate from current levels going ahead. Commenting on Godrej Properties, he said there was a strong uptrend in the property market. Godrej also expects mortgage rates to moderate from current levels. Godrej Industries had late Friday announced its results for the third quarter. Consolidated net profit for the quarter rose 39% from a year ago to Rs 84.7 crore, while net sales were up 42% year-on-year to Rs 1,447.1 crore. Godrej Industries shares were trading up 0.2% at Rs 213.35 on NSE in morning trade on Monday. Godrej Consumer shares were up 0.7% at 444.15 and Godrej Properties was little changed from Friday's close at Rs 660.Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
