Godrej Consumer Products Q2 preview: PAT likely to rise 21% YoY; personal care segment could see 2% volume growth

Godrej Consumer Products Ltd, the Mumbai-based consumer goods company, is all set to announce its July-September quarter (Q2FY24) numbers on Wednesday, November 1. According to analysts, the company will post a rise of 21 per cent in its consolidated profit after tax (PAT) at Rs 434 crore as against Rs 359 crore logged in the year-ago period.

Zee Business analysts estimate the revenue of the company for the quarter under review at Rs 3,573 crore as against Rs 3,392 crore seen in the year-ago period, which implies an increase of five per cent. 

Further, they peg the earnings before interest, tax, depreciation, and amortisation, or EBITDA, at Rs 676 crore as compared to Rs 542 crore registered in the corresponding quarter of the previous fiscal, implying a rise of 25 per cent.

According to Zee Business Research, the company's margin, a key to measuring profitability, is likely to come in at 18.9 per cent against 16 per cent seen in the corresponding quarter of the previous fiscal.

The research desk further notes that Godrej Consumer Product's domestic business may grow by five per cent in the September quarter, and gross margins may also improve.

Meanwhile, the personal care segment could record volume growth of two per cent but could have an impact on income due to a price correction.

Good growth is expected in the air freshener segment. Conversely, there may be a weakness in the hair colour business.

The company's Africa business is expected to see a 15 per cent growth in sales and profit in constant currency (CC) terms. It is likely to see the impact of Nigeria's currency depreciation.

Management commentary on rural demand will be key monitorable.

Godrej Consumer Products Q1 results

FMCG major Godrej Consumer Products Ltd reported a 7.62 per cent decline in consolidated net profit to Rs 318.82 crore in the June quarter due to expenses incurred on exceptional items.

The company posted a net profit of Rs 345.12 crore in the April-June period last year.

However, revenue from the sale of products of the Godrej group's FMCG arm was up 10.45 per cent to Rs 3,417.86 crore during the first quarter of the current fiscal, up from Rs 3,094.31 crore logged a year ago.

Godrej Consumer Products price: Past performance

In 2023 so far, shares of Godrej Consumer Products have risen 10 per cent against the headline index's rise of over 4 per cent.

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