Godrej Consumer Products Q3 Results: Profit Falls 14%, Misses Estimates
Godrej Consumer Products' revenue rose 3% to Rs 3,768 crore in the December quarter.
Godrej Consumer Products Ltd.'s third-quarter profit fell 14.2% on a yearly basis, missing analysts' estimates.
The fast-moving consumer good company's consolidated net profit came in at Rs 498 crore during the quarter-ended December 2024, according to an exchange filing. That compares with the Rs 581-crore consensus forecast of analysts tracked by Bloomberg.
The firm's revenue rose 3% to Rs 3,768 crore, as against Rs 3,660 crore in the year-ago period.
Godrej Consumer Products Q3 FY25 Result Highlights
Revenue up 3% at Rs 3,768 crore versus Rs 3,660 crore (Bloomberg estimate: Rs 3,709 crore).
Ebitda down 10.1% at Rs 756 crore versus Rs 841 crore (Estimate: Rs 775 crore).
Margin contracted to 20.1% versus 23% (Estimate: Rs 21%).
Net profit down 14.2% at Rs 498 crore versus Rs 581 crore (Estimate: Rs 525 crore).
The trade landscape is undergoing significant transformation as modern trade gains share at the expense of general trade, leading to a reshuffle in the channel distribution mix. While rural markets continue to perform well, the urban slowdown is emerging as a serious concern, impacting overall growth trajectories. Premium product categories, once expected to drive growth, are now expanding at a slower pace, with demand dampened in urban areas.
Volumes for the second half this fiscal are projected to remain lower than the previous half levels, with recovery anticipated only after two quarters. The company also foresees one to two additional rounds of price hikes in the coming months, with pricing growth in Q4 expected to outpace Q3. Regional performance was mixed, with Indonesia posting strong numbers — volumes grew by 6%, and sales increased by 9% in rupee terms. However, sales in Africa, the US, and the Middle East declined by 8%.
Rising palm oil costs have further squeezed margins, with the standalone Ebitda margin dropping to 22.6%, below normative levels. Segment-wise, Home Care grew by 4%, and Personal Care by 2%, but premium formats in Household Insecticides suffered due to the urban slowdown. These headwinds underscore the challenges posed by inflationary pressures and changing consumer behavior.
