Godrej Consumer Products Q1 results preview: Net profit likely to jump 26% on steady demand

Godrej Consumer Products is scheduled to report its quarterly numbers on Monday, August 7. Analysts expect the FMCG major — whose popular brands include Cinthol, Good Knight, Renew, Ezee and Aer — to report strong results for the April-June period driven by steady demand.

According to Zee Business research, Godrej Consumer Products is expected to report a consolidated net profit of Rs 433 crore for the first quarter of the current financial year, which translates to growth of 25.5 per cent compared with the corresponding period a year ago. The analysts estimate the company's quarterly revenue at Rs 3,491 crore as against Rs 3,125 crore for the year-ago period. 

The company is estimated to report Rs 696 crore in earnings before interest, taxes, depreciation and ammortisation (EBITDA) for the quarter ended June 30, implying growth of almost one-third from Rs 533 crore a year ago, according to the research. 

Zee Business analysts peg Godrej Consumer Products' margin — a key measure of profitability — for the quarter at 19.9 per cent, up 290 basis points on a year-on-year basis. They expect the company's volume growth to come in at 7-9 per cent compared with the year-ago period. 

How Godrej Consumer Products fared in the March quarter

For the fourth quarter of the financial year 2022-23, Godrej Consumer Products' net profit grew 24.5 per cent on a year-on-year basis to Rs 452 crore and revenue expanded 9.7 per cent to Rs 3,200 crore. 

Its EBITDA stood at Rs 642 crore for the January-March period as against Rs 468 crore for the year-ago period and margin improved by 410 basis points to 20.1 per cent.

Godrej Consumer Products shares

Godrej Consumer Products shares finished the June quarter with a gain of 11.6 per cent, in line with a 10.5 per cent rise in the headline Nifty index. 

As of August 4, the FMCG stock had grown 16.3 per cent so far in 2023 as against a 7.8 per cent gain in the benchmark index.

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