Q1 Results: Godrej Consumer Expects Rate Cuts, Better Monsoons To Boost Volumes
Godrej Consumer Products Ltd. expects volume growth to improve in the coming quarters of 2019-20, Managing Director and Chief Executive Officer Vivek Gambhir said.
Business will grow with the government’s push to get rural growth back on track, and a pick-up in monsoons, he told BloombergQuint in an interaction. This, along with the company’s internal initiatives and new launches, will lift growth, he said.
Acknowledging that India is facing a consumption slowdown, Gambhir said rural stress is its single largest contributing factor. The liquidity crunch is also affecting the market, he said. “Hopefully one more rate cut later in August should enhance liquidity.”
On the consumer goods maker’s international portfolio, Gambhir said the company will have a stronger profit performance starting from the second quarter.
Key Earnings Highlights (YoY)
- Revenue fell 5 percent to Rs 2,349 crore.
- Operating profit rose 2.7 percent to Rs 455 crore.
- EBITDA margin at 19.4 percent versus 17.9 percent.
- Net profit rose 1 percent to Rs 408 crore.
Watch the full interaction here: