Latest news with #GodrejConsumerProductsLtd
Business Upturn
4 days ago
- Business
- Business Upturn
Godrej Consumer Products shares jump 5% after government cuts import duty on crude edible oil by 10%
Godrej Consumer Products Ltd. shares gained 5% in early trading following the central government's announcement to reduce import duties on crude edible oils. As of 9:22 AM, the shares were trading 5.06% higter at Rs 1,293.70. Effective from May 30, the government has lowered the basic customs duty on crude palm oil, crude soyoil, and crude sunflower oil from 20% to 10%. Including the Agriculture Infrastructure and Development Cess and the Social Welfare Surcharge, the overall import duty has decreased from 27.5% to 16.5%. This move aims to boost domestic demand and increase imports of key edible oils such as palm oil, soyoil, and sunflower oil. The reduction in import duty is expected to help lower edible oil prices in the domestic market. Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information. Aman Shukla is a post-graduate in mass communication . A media enthusiast who has a strong hold on communication ,content writing and copy writing. Aman is currently working as journalist at
Mint
09-05-2025
- Business
- Mint
Godrej Consumer's recovery hinges on premium shift, international play
Godrej Consumer Products Ltd (GCPL) is entering FY26 determined to boost growth beyond its soap business. The company is sharpening its focus on premium segments and strengthening its international playbook to reignite growth. Its management is looking to achieve standalone volume growth of mid-to-high single digits in FY26. Consolidated revenue and Ebitda (earnings before interest, taxes, depreciation, and amortisation) growth is seen in the high single digits and double digits, respectively. In the March quarter (Q4FY25), consolidated organic volumes grew 6% year-on-year, driven by 4% growth in India and 5% in Indonesia. India and international businesses contribute roughly 60% and 40% of GCPL's consolidated revenues. Segment-wise performance The company's Q4 consolidated revenues increased 6% on-year to ₹3,578 crore. India revenue was up 8% on-year, but the soaps portfolio remained a drag, led by the slowdown in urban demand. Soaps volumes fell by mid-to-high single digits, with the company rolling out high single-digit price hikes. The hit from price-volume rebalancing amid rising palm oil costs points to the scale of challenges in reviving soaps. The management expects soap category volume growth to slow to 2-3% (versus 3-4% earlier) as consumers shift from bars to liquid hand wash. Also Read: What higher gold prices have meant for Titan's Q4 performance The home care business was a bright spot, with sales up 14%, helped by double-digit growth in household insecticides (HI). Goodknight incense sticks are faring well, though much of this growth is at the lower end, fuelling consumer downtrading. GCPL is betting on the RNF molecule, introduced in 2024, to drive premiumisation and restore balance in the portfolio. Fabric care is scaling rapidly. Fab liquid detergent, with an annual run rate of ₹250 crore, has emerged as a standout performer in a category growing at 30-35% CAGR over two years. GCPL expects this business to double annually over the next few years. Meanwhile, air fresheners have posted over 25% CAGR and market share gains, thanks to disruptive launches. International show GCPL's international business, once a source of volatility, is finding steadier ground. Sales in the GAUM region (Africa, US, Middle East) rose 12% in constant currency, with Ebitda margins improving 250 basis points (bps) to 16.6%, marking the fifth straight quarter of expansion. One basis point is one-hundredth of a percentage point. Indonesia's top line remained flat in constant currency, but Ebitda climbed 10% on the back of structural fixes and new launches. Having completed its FY25 reorganisation, GCPL is now focussed on scaling 'hero' products across select international categories. In Indonesia, upcoming launches include HIT anti-roach and Stella car fresheners. Also Read: Dabur stock lacks triggers amid weak financial show Challenges persist Even with these wins, margin pressures persist. Steep palm oil inflation compressed gross margin, which fell 360bps on-year to 52.5%, while Ebitda margin slipped 123bps to 21%. GCPL has leaned on cost controls—employee expenses fell 19% and ad spends ticked up just 1%—to protect profitability. Motilal Oswal Financial Services cut earnings per share estimates by about 2% for FY26 and FY27, respectively, on account of margin pressure and slow urban demand. Given high-cost inventory, near-term gross margins are likely to remain under pressure. Management has outlined interventions, including price hikes in incense sticks and supply chain and media efficiencies, to stabilise margins. 'A combination of the above should drive high-single-digit growth on a consolidated basis (with mid-high single-digit volume growth in India) and double-digit Ebitda growth in FY26. The guidance is a tad lower than our expectation of low double-digit sales growth led by lower growth in soaps and some downgradation in HI," JM Financial Institutional Securities Ltd noted. 'The company's disruptive innovations, introduction of access packs, expansion into new growth categories, and increased advertising expenditure are anticipated to drive growth," said Motilal Oswal's analysts in a report dated 8 May. Also Read: Polycab shone in FY25, but will investors stay plugged in? Premiumisation, international gains, and cost controls have set the stage for growth, but soaps remain a drag. At 52 times, FY26 estimated earnings, according to Bloomberg data, GCPL's stock is already pricing in much of the recovery narrative, leaving little room for execution missteps. FY26 will be the test of whether GCPL can not just reset, but truly deliver.
Mint
07-05-2025
- Business
- Mint
Godrej Consumer Products bullish on demand revival amid easing inflation, tax cuts
New Delhi: Godrej Consumer Products Ltd (GCPL) is betting on easing food inflation, tax cuts, and upcoming pay commission hikes to revive consumer demand over the next 12 to 18 months, CEO Sudhir Sitapati said on Wednesday. Despite lingering headwinds in its core soaps business due to a surge in palm oil prices, the company expects demand to pick up as inflation stabilizes and the impact of government welfare schemes kicks in. For the March quarter, GCPL reported a 6% rise in consolidated volumes and a 6.2% increase in revenue to ₹ 3,597.95 crore. But the company's broader strategy hinges on a pivot to emerging categories like pet care, liquid detergents, and deodorants, where it sees higher growth potential even as its soaps segment remains under pressure. Sitapati expressed confidence in the outlook for FMCG demand, citing factors like reduced food inflation and the government's income tax cuts and welfare schemes. 'We are bullish about consumer demand over the next 12 months for a variety of reasons. The El Nino effect basically took up food prices in India last year. Food price inflation has an immediate impact on FMCG consumption. Now that El Nino has reversed, food price inflation has come down in the January to March period,' he said. 'We should see some kind of demand coming back,' he added. GCPL's performance in the March quarter reflects this cautious optimism. Its consolidated revenue from operations grew 6.2% to ₹ 3,597.95 crore, with a profit of ₹ 411.90 crore, compared to a ₹ 1,893.21 crore loss a year ago. For FY24, the company saw a 2% rise in revenue from operations, totaling ₹ 14,364.29 crore. However, the company acknowledged the persistent challenges posed by inflationary pressures, particularly the sharp rise in palm oil prices, which have affected its Ebitda margins. Sitapati referred to the inflationary spike as a "short-term blip" and defended the company's decision to limit price hikes, passing on only 15–16% of the palm oil price increase to consumers rather than shocking the market with higher prices. Looking ahead, GCPL is shifting focus toward high-growth, under-penetrated categories, even as the soaps business continues to feel the impact of rising input costs. The company sees significant growth opportunities in body wash, liquid detergents, deodorants, air fresheners, pet care, and sexual wellness. In 2023, GCPL acquired the fast-moving consumer goods business of Raymond Consumer Care Ltd (RCCL), adding brands like Park Avenue deodorants and KamaSutra sexual wellness products to its portfolio. In April 2024, the company launched its pet care brand, 'Godrej Ninja,' in Tamil Nadu, leveraging the group's marketing and manufacturing strengths. Additionally, GCPL made a strong move in liquid detergents with the launch of Fab Liquid, priced at ₹ 99, which achieved an annualized revenue run rate of ₹ 250 crore within 12 months. The company is also introducing more affordable products in its deodorant range, including a ₹ 99 antiperspirant, Block, and a reduced-price KamaSutra deodorant. Another segment poised for growth is household insecticides. GCPL's brands, Goodknight and Hit, saw double-digit growth in the March quarter. The company is also expanding in the category with innovations like a patented molecule (RMF) in its electric and incense formats, aiming to disrupt the market for illegal incense sticks and drive product and consumer awareness. GCPL anticipates mid-to-high single-digit volume growth in FY26, with high-single-digit revenue growth and double-digit Ebitda growth for FY25. The company expects a recovery in profits once palm oil prices stabilize, which should help support margin expansion in the coming quarters. Sitapati remains optimistic that GCPL's focus on the "categories of tomorrow" will help the company weather short-term challenges and position it for long-term success.
&w=3840&q=100)
Business Standard
06-05-2025
- Business
- Business Standard
GCPL reports ₹412 crore profit in Q4 on strong domestic volume growth
FMCG major Godrej Consumer Products Ltd on Tuesday reported a consolidated net profit of Rs 411.9 crore for the fourth quarter ended March 2025, helped by a volume growth in the domestic market. It had incurred a loss of Rs 1,893.21 crore in the January-March period a year ago, due to impairment of loss towards its Africa (including Strength Of Nature) business, according to a regulatory filing from Godrej Consumer Products Ltd (GCPL). Total revenue from operations was at Rs 3,597.95 crore during the quarter under review. It was Rs 3,385.61 crore in the corresponding period last fiscal. In "Q4 FY 2025 consolidated organic sales grew by 7 per cent in INR terms year-on-year on the back of underlying volume growth of 6 per cent," said GCPL in its earning statement. Total expenses in the quarter were at Rs 3,000.84 crore. GCPL Managing Director and CEO Sudhir Sitapati said:" We delivered a sequentially improving performance in Q4 FY 2025, despite market conditions remaining the same. Our consolidated organic volumes for Q4FY25 grew by 6 per cent, led by the India business growing volumes at 4 per cent and Indonesia growing volumes at 5 per cent." Revenue from the India market, where it operates with brands such as Good Knight, Cinthol and HIT, was Rs 2,184.92 crore. On a standalone business, which mainly consists of domestic business, GCPL's "underlying volume grew by 4 per cent, sales grew by 8 per cent year-on-year," it said. According to Sitapati, the "demand conditions in India have continued to be impacted by headwinds in urban consumption. Surge in palm oil prices by more than 50 per cent is negatively impacting our EBITDA margin." However, buoyed by a good season, GCPL's Household Insecticides business grew volumes in strong double digit. "The volume growth on the non-soaps' portfolio was high single digit with soaps volume growth impacted by volume-price rebalancing," he said. Revenue from GCPL's second biggest market Indonesia was at Rs 504.29 crore, up 1.2 per cent in the March quarter. According to GCPL, Indonesia underlying volume grew by 5 per cent, though sales grew by 1 per cent in INR terms and 1 per cent in constant currency terms, year-on-year. GCPL's revenue from Africa (including Strength of Nature) market was up 16.27 per cent to Rs 690.34 crore in the March quarter. "Africa, USA, and Middle East organic sales grew 12 per cent in constant currency terms and 23 per cent in INR terms, year-on-year," it said. However, GCPL's revenue from other markets was down 11.3 per cent to Rs 257.23 crore in Q4/FY25. "Latin America and Others sales grew in constant currency terms, by 2 per cent, but declined by 11 per cent in INR terms, year-on-year," it said. In the financial year ended March 31, 2025, GCPL's net profit was at Rs 1,852.30 crore. Total consolidated revenue from operations was at Rs 14,364.29 crore, up 1.9 per cent. In FY25 "Consolidated organic underlying volume grew at 4 per cent, sales grew by 4 per cent in INR terms impacted by devaluation, constant currency growth of 8 per cent year-on-year," it said. Meanwhile, in a separate filing, GCPL said its board in a meeting held on Tuesday declared an interim dividend of 500 per cent, which is Rs 5/- per share of face value of Re 1 each for financial year 2025-26. Shares of GCPL on Tuesday settled at Rs 1,250.90 apiece on BSE, down 0.9 per cent from the previous close.
Economic Times
06-05-2025
- Business
- Economic Times
Godrej Consumer Products Q4 Results: Co swings to profit at Rs 412 crore, revenue Rs 3,598 cr
FMCG major Godrej Consumer Products Ltd on Tuesday reported a consolidated net profit of Rs 411.9 crore for the fourth quarter ended March 2025, helped by a volume growth in the domestic market. It had incurred a loss of Rs 1,893.21 crore in the January-March period a year ago, due to impairment of loss towards its Africa (including Strength Of Nature) business, according to a regulatory filing from Godrej Consumer Products Ltd (GCPL). ADVERTISEMENT Total revenue from operations was at Rs 3,597.95 crore during the quarter under review. It was Rs 3,385.61 crore in the corresponding period last fiscal. In "Q4 FY 2025 consolidated organic sales grew by 7 per cent in INR terms year-on-year on the back of underlying volume growth of 6 per cent," said GCPL in its earning statement. Total expenses in the quarter were at Rs 3,000.84 crore. GCPL Managing Director and CEO Sudhir Sitapati said:" We delivered a sequentially improving performance in Q4 FY 2025, despite market conditions remaining the same. Our consolidated organic volumes for Q4FY25 grew by 6 per cent, led by the India business growing volumes at 4 per cent and Indonesia growing volumes at 5 per cent." Revenue from the India market, where it operates with brands such as Good Knight, Cinthol and HIT, was Rs 2,184.92 crore. ADVERTISEMENT On a standalone business, which mainly consists of domestic business, GCPL's "underlying volume grew by 4 per cent, sales grew by 8 per cent year-on-year," it said. According to Sitapati, the "demand conditions in India have continued to be impacted by headwinds in urban consumption. Surge in palm oil prices by more than 50 per cent is negatively impacting our EBITDA margin." ADVERTISEMENT However, buoyed by a good season, GCPL's Household Insecticides business grew volumes in strong double digit. "The volume growth on the non-soaps' portfolio was high single digit with soaps volume growth impacted by volume-price rebalancing," he said. ADVERTISEMENT Revenue from GCPL's second biggest market Indonesia was at Rs 504.29 crore, up 1.2 per cent in the March quarter. According to GCPL, Indonesia underlying volume grew by 5 per cent, though sales grew by 1 per cent in INR terms and 1 per cent in constant currency terms, year-on-year. ADVERTISEMENT GCPL's revenue from Africa (including Strength of Nature) market was up 16.27 per cent to Rs 690.34 crore in the March quarter. "Africa, USA, and Middle East organic sales grew 12 per cent in constant currency terms and 23 per cent in INR terms, year-on-year," it said. However, GCPL's revenue from other markets was down 11.3 per cent to Rs 257.23 crore in Q4/FY25. "Latin America and Others sales grew in constant currency terms, by 2 per cent, but declined by 11 per cent in INR terms, year-on-year," it said. In the financial year ended March 31, 2025, GCPL's net profit was at Rs 1,852.30 crore. Total consolidated revenue from operations was at Rs 14,364.29 crore, up 1.9 per cent. In FY25 "Consolidated organic underlying volume grew at 4 per cent, sales grew by 4 per cent in INR terms impacted by devaluation, constant currency growth of 8 per cent year-on-year," it said. Meanwhile, in a separate filing, GCPL said its board in a meeting held on Tuesday declared an interim dividend of 500 per cent, which is Rs 5/- per share of face value of Re 1 each for financial year 2025-26. Shares of GCPL on Tuesday settled at Rs 1,250.90 apiece on BSE, down 0.9 per cent from the previous close. (You can now subscribe to our ETMarkets WhatsApp channel)
