GCPL Q3 update: Shares of Godrej Consumer Products Ltd (GCPL), a leading FMCG player, slipped as much as 5.8 per cent to Rs 1,149 apiece on the BSE on Monday, January 8, after the company last week said it was expecting to deliver "mid-single-digit volume growth" on a consolidated basis for the December quarter (Q3 FY24). In the domestic business, GCPL's organic business delivered steady underlying volume growth of mid-single digits, while its inorganic business, Park Avenue and KamaSutra, reported double-digit volume growth.

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"Growth was broad-based across both home care and personal care. Park Avenue and KamaSutra brands continue to perform well and are on track to achieve full-year ambition," the Godrej Group FMCG arm said in a quarterly update.

The company said its Indonesia business—the second biggest market after India for GCPL—continues to deliver "compelling performance" with close to double-digit volume growth and high-single-digit constant currency sales growth.

At 10:42 AM, the stock was trading at Rs 1,170.65, down over 4 per cent on the BSE.

"The GAUM (Godrej Africa, US, and Middle East) business had a flattish to mild decline in volume growth. This was driven by trade destocking in geographies that we plan to restructure in Q4," it said.

Although it sustained double-digit constant currency sales growth, the impact of the Naira devaluation will result in a high-single-digit sales decline, it said. CLICK HERE TO READ THE FULL REPORT

What brokerages say

Foreign brokerage CLSA has maintained its 'Sell' rating on the stock with a target price of Rs 936. The brokerage notes that the firm reported flat sales growth while its organic sales growth saw a low single-digit decline at a consolidated level, largely due to currency impact from the overseas business. Domestic volumes were in line with expectations, it added.