Operating conditions in India remain subdued in Q4 of FY24: Godrej Consumer Products

Godrej Consumer Products Ltd on Friday said operating conditions in India continue to remain subdued in the fourth quarter of FY24 but its business continued to deliver strong underlying volume growth at high single digit with broad-based growth.

In its quarterly update for Q4 FY24, the company said at a consolidated level (organic), it expects to deliver underlying volume growth of "high single digit and sales growth of mid-single digit driven largely by currency volatility".

"Operating conditions in India continue to remain subdued. Our India organic business continued to deliver strong underlying volume growth at high-single-digit with growth being broad-based across both home care and personal care," Godrej Consumer Products Ltd (GCPL) said.

While demand in household insecticides has been subdued due to an extended winter in the North and East, GoodKnight Agarbatti launch was well received by consumers, it said, adding that "Park Avenue and KamaSutra brands delivered in-line with category seasonality. Reported underlying volume growth continues to be in double-digit".

On Indonesia business, the company said it continues to consistently deliver strong performance with double-digit volume growth and sales growth.

The GAUM (Godrej Africa, USA, and Middle East) organic business delivered high single-digit volume growth along with double-digit constant currency sales growth, the company said.

However, due to the devaluation of Nigerian currency Naira in January, sales in rupee terms will see a double-digit decline, it added.

"At a consolidated level (organic), we expect to deliver underlying volume growth of high single-digit and sales growth of mid-single digit driven largely by currency volatility. EBITDA (inclusive of forex) margin continues to expand year-on-year despite increased media investments," GCPL said, adding that the reported underlying volume growth is expected to be in double-digit.