Godrej Consumer Expects Indonesia Market To Drive Global Business Growth

Godrej Consumer Products Ltd. expects its Indonesian arm to drive global revenue growth on the back of potential macro reforms in the country.

“We continued to see around low double-digit sales growth in Indonesia,” said Sameer Shah, head of finance (India and SAARC), Godrej Consumer Products. “The demand environment is relatively stable [when compared to India] and they are talking about labour reforms and corporate tax cuts which should boost the overall industry.”

The Godrej group company expects its Indonesia business to be “extremely strong” in the medium term. Indonesia accounts for nearly a third of its global business and contributed nearly 16 percent of the overall revenue for the quarter ended December. The company earlier said it recorded high single-digit constant currency sales growth in the home and personal care space in Indonesia and witnessed “robust” performance in SAARC markets in the October-December period.

Q3 Results (QoQ)

• Net sales up 2 percent to Rs 2,778 crore.
• Ebitda rose 3.4 percent to Rs 631 crore.
• Ebitda margin at 22.7 percent versus 22.4 percent.
• Net profit rose 5.2 percent to Rs 445 crore.
• Domestic volumes rose 7 percent.

Shares of the company declined 6.3 percent compared to a 0.7 percent fall in the Nifty Index.

Watch| Godrej Consumer on what helped 7% volume growth in India business.