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Revenue
₹3,449 Cr
verified against source
Revenue YoY
—
reported change
EBITDA
Pending
latest reported figure
Source
screener in
record provenance
Actual signal trajectory
Where this quarter sits.
Quarter read
What the record says.
Godrej Consumer Products delivered a strong Q1 FY2024, with consolidated organic UVG of 8% and constant currency sales growth of 13%, ahead of expectations despite tough market conditions. India organic UVG was 10% with EBITDA growth of ~32%, driven by a soft competitor in soaps, a good HI season, and market development investments. Indonesia saw 12% volume growth and 53% EBITDA growth, with modern trade stocks reduced from 95 to 58 days. The Nigeria devaluation will optically impact INR sales growth by ~200bps, but management expects to pass on costs and maintain profitability. The company plans INR 900 crore organic CapEx in India over 18-36 months for volume growth and automation. Risks include sustained demand weakness in India and potential further naira depreciation.
Colored figures show movement against the previous available record.
Guidance to track
- Management expects to pass on cost increases from naira devaluation (NGN 650 to 750) to consumers, keeping EBITDA plus Forex loss line intact.
- Management reiterated ambition of high single-digit EBITDA margin for the Raymond portfolio on a full-year basis, with improvements from Q2 onwards.
- Planned investment of INR 900 crore in organic manufacturing CapEx in India for volume growth and logistics, with ~INR 300 crore per year.
- Management maintained guidance of flat net sales year-on-year for the Raymond portfolio, despite downstocking and returns in Q1.
Risks flagged
- The naira devaluation from NGN 450 to 750 per USD will optically reduce INR sales growth by ~200bps and complicate P&L reading, though management expects to pass on costs.
- Management noted tough market conditions in India; if demand does not recover, volume growth may slow despite market development investments.
- Analyst raised concern about sharp EBITDA loss in Raymond portfolio; management expects improvement but Q2 may still see pain, with full-year high single-digit margin guidance at risk if synergies lag.
- Management cautioned against declaring victory in HI despite two strong quarters, citing need for more efficacious products and regulatory hurdles for new molecules.
Key quotes
- Despite the tough market conditions, our performance in Q1 FY 2024 was ahead of our expectations on both volume and profit growth.
- We think our underlying volume trajectory, while not yet double digit, has significantly improved because of the shape of P&L.
- Our general thing has been, put the investments up front, take the pain early, be patient in the results.
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