Godrej Consumer Products Ltd. expects double-digit growth on a consolidated basis, led by "mid-single digit" volume growth in the three months through March.
In India, the consumer goods maker said that its performance has "exceeded expectations", especially on the volume front, according to its fourth-quarter update with the bourses. "We expect to deliver double-digit volume and value growth," it said.
The domestic branded business growth was "very strong," registering volume and value growth in the teens, in line with its strategy of volume-driven category development, according to the company.
Overall, the maker of Goodknight mosquito repellents and Cinthol soaps said that the growth was broad-based and led by double-digit volume and value growth in both the home care and personal care segments.
Marico Ltd. also expects its gross margin to expand and "drive reasonable growth" in operating profit as raw material prices fall.
During the January-March quarter, the fast-moving consumer goods sector is expected to witness a gradual recovery in growth rates, driven by steady demand trends and easing inflationary pressures on margins.
However, Marico said that it anticipates "a more visible and sustained recovery" in demand in the coming months, even as a healthy monsoon season will be critical for the same to materialise.
At a consolidated level, Godrej Consumer said it expects its profits to see improvement in Q4, led by gross margin recovery and continued marketing investments translating to strong double-digit Ebitda growth. It said that the growth trends continued to improve sequentially.
The company has started to see "gradual recovery" in Indonesia, a key market that was severely impacted as hygiene products took a hit after the Covid-19 wave ebbed and later stubbornly high inflation hurt demand.
The Indonesia business, the company said, is expected to report mid-single-digit constant currency sales growth. "The growth in ex-hygiene is close to double digits. We believe building blocks are in place in Indonesia to drive steady-to-strong performance in the next fiscal year," it said.
Godrej Africa, the U.S., and the Middle East witnessed a temporary pause in strong double-digit sales growth momentum, clocking higher than mid-single-digit sales growth in constant currency terms, according to the company. "This was due to the elections and the impact of demonetisation in Nigeria. However, we have seen a strong sales recovery in March," the company said.
Shares of Godrej Consumer declined 0.45% after the company's update, compared with a 0.81% gain in the benchmark Nifty 50 as of 1:09 p.m.
So far this year, the shares of the company have gained 7.75%. In contrast, shares of peer companies like Hindustan Unilever Ltd. are up just 0.10%, while Dabur Ltd. and Marico are down 2-5% year-to-date.
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