Godrej Consumer Products Q3 Results Review - Indonesia Yet To Normalise: Dolat Capital

Dolat Capital Report

Godrej Consumer Products Ltd.’s Q3 FY23 revenue and Ebitda was in line with our estimate. The company reported 3% volume growth in India business.

Lack of consistency in household insecticide business and economic slowdown in Indonesia remains key hurdles for Godrej Consumer’s growth. The Indonesia business is witnessing gradual recovery, reported 3% constant currency decline during the quarter. Ebitda margin in the business contracted by 100 basis points.

Home care segment reported 10.1% sales growth, two-year compound annual growth rate stood at 7.1%. Personal care segment posted 13.9% growth with 12.9% two-year CAGR.

We have upward revised our FY23/24/25E earnings per share estimates at Rs 17.4/21.1/23.7 to factor in Q3 performance. However, we remain cautious about the Indonesia and HI performance.

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