Shares of Godrej Consumer Products Limited tumbled over 9% on December 9 after the company gave a cautious outlook for the October-December quarter. The company expects mid-single-digit sales growth for Q3 and has flagged subdued economic demand conditions. It has also warned of a “temporary downward breach” in its operating margins for the quarter, along with flat Underlying Volume Growth for its standalone business.
GCPL blamed the slowdown on weak FMCG market growth, delayed winter in North India and a cyclone in the South that impacted Home Insecticides- one of its key growth drivers. The rest of its portfolio is said to be performing well and double digit UVG is expected.
The company also pointed out that a high base from the previous fiscal, driven by favorable commodity prices, may impact its year-on-year growth figures. Brokerages like JPMorgan believe the headwinds are transient in nature, and GCPL’s diversified portfolio would show promising growth on the back of a surge in demand.
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Source: Moneycontrol
News Desk
