At close, the Sensex was down 200.7 points or 0.3 percent at 81,508.5, and the Nifty was down 58.8 points or 0.2 percent at 24,619. About 2,222 shares advanced, 1,692 shares declined, and 151 shares remained unchanged.
GCPL anticipates a 'temporary downward breach' in the margin the December quarter, from the normative range, amid subdued demand conditions and a high base.
Godrej Consumer's standalone business is expected to report flattish UVG (Underlying Volume Growth) and around mid-single digit sales growth in this quarter, said the company in its update on quarterly sales.
Godrej Consumer Q2 results: Revenue rises 2% to Rs 3,666 cr
The firm's standalone revenue is set to show strong performance, though EBITDA growth will remain flat.
Godrej Consumer's reported growth will be double-digit in volume and high-single digit in value terms.
The current divestment is in-line with the management strategy of restructuring East Africa operations, where it has relatively low profitability, per analysts.
The companies are focusing on the digital medium because it has greater and quicker reach. Most firms say they have seen gains in market share on account of their greater ad spends and promotions.
Godrej Consumer reported a consolidated net profit of Rs 432.77 crore for the July-September quarter, a 20.59 percent gain from the year-ago quarter
The company had posted a consolidated profit after tax of Rs 527.6 crore in the same period last fiscal, Godrej Consumer Products Ltd (GCPL) said in a regulatory filing.
It had posted a net profit of Rs 478.89 crore in the July-September quarter a year ago, GCPL said in a regulatory filing.
Goldman Sachs has a Buy rating on the stock with a target price of Rs 1,100 per share
The company's forecast also comes against the backdrop of the country's FMCG industry continuing to remain soft amid slower growth in rural markets.
The new product launch by the company is an attempt to drive the penetration of bodywashes in the country.
Prices of commodities have now peaked out and there has been a 15-20 percent decline from peak prices in most commodities, according to a senior official.
Godrej Consumer Products expects inflation to moderate only in the second half of the year much like most other FMCG companies.
Overall, short-term challenges such as unprecedented global commodity inflation and the performance of its Indonesia business, continued to play out during the quarter, impacting consumption and margins, the company said.
Companies such as ITC, Godrej Consumer Products and Tata Consumer Products are using insights drawn from social chatter and customer feedback on social media to launch new products and variants.
“After 11 high impact years, Sunil Kataria, CEO of our India and SAARC business has decided to pursue an external opportunity. I will directly run the business in both the regions in addition to my responsibility as MD and global CEO,” said Sudhir Sitapati during the call.
Godrej Consumer Products reported a 210 basis points decline in EBITDA margins for the second quarter as it battled inflation in key commodity prices.
The company is targeting the rapidly growing online baby care market, which is estimated to be around Rs 500 crore, said GCPL CEO (India and SAARC) Sunil Kataria.
The near term is likely to be weak although growth could improve in the medium term. Investor attention will anyway shift to the new MD and CEO’s plans for the company
The company, which has powerful brands such as Hit and Good Knight in the HI segment, expects a positive opportunity as in the post-covid world, health-related concerns would go up.
The company is following a calibrated approach in passing on higher costs to consumers keeping the demand scenario in mind, said Sameer Shah, Head - Finance and Investor Relations, GCPL.
Several analysts have upgraded the stock after the announcement of GCPL’s CEO succession plan.