Godrej Consumer Products forecasts sustained demand stability but notes that El Niño could create certain difficulties by affecting the income of the agricultural sector and farmers. Asif Malbari, CFO of Godrej Consumer Products, told Business Standard that despite potential issues, he hopes that increased government spending will be able to offset these negative factors.
He also added that the company might lose some of the foreign exchange earnings observed in the quarter from April to June. Nevertheless, the large Fast-Moving Consumer Goods (FMCG) manufacturer expects to maintain volume growth in the high single digits and revenue growth in the range of ten percent.
Regarding price increases, Malbari noted that a significant portion has already been passed on to consumers, and he does not anticipate substantial changes in pricing as long as raw material prices remain at their current level.
Prospects in African, Middle Eastern, and US Markets
For the markets in Africa, the Middle East, and the US (GUAM), the company states that it is actively developing new product categories. According to management, this represents a major opportunity over many decades, and the business is expected to show strong results in the future.
In the Indian market, the company is also expanding its fast-moving categories, and the significance of these categories has risen from 15 percent last year to 17 percent. Malbari emphasized that this figure will continue to grow steadily as Godrej Consumer Products adds more products to new segments.
During the quarter from July to September, the company plans to enter the dishwashing liquid market under the brand Godrej Rizz and launch it in select regions.
In the quarter from April to June, the company's consolidated net profit increased by 11.5 percent, reaching 504.5 crore rupees. The soap manufacturer Cinthol demonstrated a volume growth of 9 percent during this period, while revenue grew by 18.3 percent, amounting to 4,225.5 crore rupees.
