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Godrej Consumer Products Q3 Results Review - Indonesia Yet To Normalise: Dolat Capital

Lack of consistency in HI business and economic slowdown in Indonesia remains key hurdles for Godrej Consumer’s growth.

<div class="paragraphs"><p>A range of Godrej Consumer products in a basket. (Source: Usha Kunji/BQ Prime)</p></div>
A range of Godrej Consumer products in a basket. (Source: Usha Kunji/BQ Prime)

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Dolat Capital Report

Godrej Consumer Products Ltd.’s Q3 FY23 revenue and Ebitda was in line with our estimate. The company reported 3% volume growth in India business.

Lack of consistency in household insecticide business and economic slowdown in Indonesia remains key hurdles for Godrej Consumer’s growth. The Indonesia business is witnessing gradual recovery, reported 3% constant currency decline during the quarter. Ebitda margin in the business contracted by 100 basis points.

Home care segment reported 10.1% sales growth, two-year compound annual growth rate stood at 7.1%. Personal care segment posted 13.9% growth with 12.9% two-year CAGR.

We have upward revised our FY23/24/25E earnings per share estimates at Rs 17.4/21.1/23.7 to factor in Q3 performance. However, we remain cautious about the Indonesia and HI performance.

Click on the attachment to read the full report:

Dolat Capital Godrej Consumer Products Q3FY23 Result Update.pdf
Opinion
Godrej Consumer Q3 Results: Profit Beats Estimates, Margin Improves

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