Godrej Consumer Products Q4 Results Preview: Net profit likely to grow 14%; margin may improve by 200 bps

Godrej Consumer Products Q4 Results Preview: Mumbai-headquartered Godrej Consumer Products (GODREJCP) is all set to report its earnings for the fourth and final quarter of the financial year 2023-24 on Monday, May 6. Analysts expect the FMCG major—whose popular brands include Cinthol, HIT, Good Knight and Ezee—to stage a strong financial performance for the three-month period on the back of robust volume growth. 

According to Zee Business research, Godrej Consumer Products is likely to register a consolidated net profit of Rs 514 crore for the March quarter, which translates into a year-on-year increase of 13.7 per cent. The analysts expect the FMCG company to register growth of 4.6 per cent in revenue to Rs 3,348 crore for the quarter.

The consumer products maker is estimated to register Rs 731 crore in quarterly earnings before interest, taxes, depreciation and amortisation (EBITDA) as against Rs 642 crore for the year-ago period, according to the research.

Zee Business analysts peg Godrej Consumer Products' margin, a key measure of profitability, for the March quarter to come in at 22 per cent, marking an improvement of 200 basis points (bps) compared with 20 per cent a year ago. They expect the FMCG firm to register a 5.0 per cent increase in domestic sales volumes and 3.5 per cent growth in domestic value.  

Godrej Consumer Products Q3 Earnings: A summary

For the quarter ended December 31, Godrej Consumer Products reported a better-than-expected set of financial results.

Its quarterly net profit grew 6.4 per cent on a year-on-year basis to Rs 581 crore while revenue expanded to Rs 3,660 crore from Rs 3,599 crore a year ago, according to a regulatory filing. 

Godrej Consumer Products logged a 16 per cent increase in the December-quarter EBITDA to Rs 841 crore. 

Zee Business analysts had pegged the company's third-quarter profit at Rs 566 crore, revenue at Rs 3,680 crore and EBITDA at Rs 815 crore. 

Its margin improved by 280 basis points to 23 per cent, better than the analysts' estimate of 22 per cent. 

Godrej Consumer Products (GODREJCP) share price: Past performance

The Godrej Consumer Products stock has rewarded investors with a return of almost 32 per cent in a year, outperforming a 23 per cent rally in the headline Nifty50 index.

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