Godrej Consumer Q2 Update: Steady Sales Growth Expected Despite Weak Macros

Godrej Consumer Products Ltd. estimated on Thursday a double-digit growth in organic sales in the September quarter despite facing challenges in a tough macroeconomic environment.

"In India, we witnessed weak macros and adverse weather conditions during the quarter," the company said in its quarterly business update. In rupee terms, organic sales growth is expected to be in the low single digits due to currency volatility, it said.

The volumes remained steady, with its growth estimated to be in the mid-single digits due to strong demand for its home-care products, according to the company. "Overall, the home-care volumes grew in the mid-single digit, while personal care grew in (the) low single digit."

The performance of the recently acquired Park Avenue and KamaSutra brands has improved sequentially and is on track to achieve full-year guidance, according to GPCL.

Regarding the international business, the company said its Indonesia business continued its upward trajectory, reporting double-digit volume and value growth. Godrej Africa, the US, and the Middle East reported constant currency sales growth in the mid-teens. However, due to currency fluctuations, the sales growth in rupee terms is projected to see a mid-single-digit sales decline.

GPCL expects to post a "healthy" expansion in operating-profit margin across key markets despite higher category development investments.

Shares of GCPL closed 1.32% lower at Rs 977.25 apiece on the BSE before the updates were released, compared with a 0.62% rise in the benchmark Sensex.