Godrej Consumer Q3: Key highlights of analysts concall

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26 Aug, 2025 12:21

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FMCG major Godrej Consumer Products (GCPL) on January 29 reported a 5.11 percent increase in consolidated net profit at Rs 445.20 crore in the third quarter ended December, helped by volume growth in domestic business. The company had posted a net profit of Rs 423.52 crore in October-December quarter a year ago, GCPL said in a BSE filing.

Total income during the quarter under review stood at Rs 2,801.57 crore, 1.99 percent lower as compared with Rs 2,746.65 crore in the year-ago period.

The company's total expenses rose 1.28 percent to Rs 2,244.16 crore as against Rs 2,215.79 crore a year ago. GCPL's India revenue rose 1.21 percent to Rs 1,523.87 crore during October-December from Rs 1,505.64 crore in the corresponding quarter a year ago.

Revenue from other markets was 3.23 percent lower at Rs 161.12 crore as against Rs 166.50 crore in October-December a year ago.

Here are the highlights from Godrej Consumer's earnings call as compiled by Narnolia Financial Advisors:

As per the management of Godrej Consumer Products, domestic volume grew by 7 percent with market share gain. Volume growth was driven by effective marketing campaign, new product launches and consumer offers. Improvement is gross margin was witnessed in both international and domestic market despite inflation in some of commodity.

International business margin improvement remained 80 bps led by 50 bps improvement in gross margin. The company delivered mid-single digit volume growth in its soap business led by price offs and consumer offers resulting in sales decline of 4 percent. The company posted higher than mid-single digit volume growth in household insecticides with sequential market share gain in overall category including incense sticks, the management said.

Response of recently launched Good Knight Gold Flash Liquid Vaporiser in South has remained encouraging and plans to scale it up nationally in Q4FY20. The company has strong product pipeline and plans to launch couple of products in the month’s time. Hair colour business' general demand slowed down impacted the hair colour business, it added.

According to Godrej Consumer management, Indonesia business margin improved by 120 bps YoY on the back of gross margin and cost saving program. The company is stepping up the innovation momentum across category and working upon gradual expansion of general trade distribution. Africa business remained mixed. West and South cluster witnessed low double digit growth while East cluster continued to witness decline led by liquidity challenges.

The company continues to scale up wet hair business. Re-launch of the Darling brand is taken positively. Adjusted EBITDA margin contracted by 130 bps due to change in regulation of waste water management in Georgia (USA).

The company's India business is steady. Going forward, the company is expected to see better volume growth in India led by new launches and enhancement of go to market model. For international business, the management guided to dive profitable sales growth in Indonesia while focusing profitability in Africa and ensuring strong turn around in Latin America business going ahead.

Godrej Consumer took 10 percent price off in liquid vaporizer in North, central and west India. In next 3-6 moths the value and volume will converge as company will ramp up Goodknight Gold Flash Liquid nationally. Rural slow down started in Q2FY20 and persisted in Q3FY20.Rural growth remained 3 percent ahead of urban for the company in Q3FY20. While sharper deceleration is witnessed in Urban in Q3FY20 (West and North witnessed sharper slow down), Godrej Consumer management said.

Blip in Kenya business is temporary due to demonetization, as situation improves margin improvement will start happening. The company is making tailor made products for different channels to take the problem of price disparity across the channel. Tax rate for full year is at 21-23 percent, it added.