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Godrej Consumer Products Q3 profit seen up 18%, domestic volume growth may be at 13%

Analysts may see a bit of a dent due to strength of Nature acquisition in the base, delay in dispatches due to SAP implementation and disruptions in trade channel due to 2 rounds of elections in Kenya.

January 30, 2018 / 10:36 IST
     
     
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    FMCG company Godrej Consumer Products' Q3 consolidated profit is seen rising 17.5 percent year-on-year to Rs 413.2 crore from Rs 351.8 crore.

    Revenue from operations may grow by 10.5 percent to Rs 2,643.3 crore in quarter gone by, compared to Rs 2,391.6 crore in year-ago period, according to average of estimates of analysts polled by CNBC-TV18.

    Operating profit is expected to increase 13.7 percent year-on-year to Rs 587.5 crore from Rs 516.8 crore and margin may expand 60 basis points to 22.2 percent from 21.6 percent.

    Important things to watch

    Domestic volume growth is seen between 12-13 percent on a low base, against negative 3 percent in Q3FY17 and 10 percent in Q2FY18.

    Analysts see domestic up-tick in soaps and hair colors businesses.

    Sequential improvement is likely in Indonesia. Company has been facing tough competition there.

    Margins in Latin America and Africa business will be keenly watched.

    India segments (which constitute 50 percent of revenues)

    Analysts expect 22-25 percent growth in soaps, 15-18 percent growth in hair colours and 8-10 percent in household insecticides segment.

    Africa business (20 percent of revenues)

    Analysts may see a bit of a dent due to strength of Nature acquisition in the base, delay in dispatches due to SAP implementation and disruptions in trade channel due to 2 rounds of elections in Kenya.

    first published: Jan 30, 2018 09:30 am

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