ADVERTISEMENT

Godrej Consumer Q2 Review- Modest Performance; Disclosure Of Business Strategy To Be A Key Trigger: Systematix

Godrej Consumer Q2 Review- Modest Performance; Disclosure Of Business Strategy To Be A Key Trigger: Systematix

<div class="paragraphs"><p>Godrej Consumer’s line up of household insecticides products. (Source: BloombergQuint)</p></div>
Godrej Consumer’s line up of household insecticides products. (Source: BloombergQuint)

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Systematix Research Report

Godrej Consumer Products Ltd.'s Q2 FY22 results were largely in-line but Ebitda margins at 21.5% were below our estimates. Key result takeaways:

  1. domestic revenue grew 9.6% YoY led by volume growth of 4% YoY (7% YoY estimated),

  2. the home insecticides business delivered single-digit growth due to seasonality while the soaps business grew in double digits aided by price hikes,

  3. domestic gross margin contracted by 830 basis points YoY on account of raw material inflation, while lower ad spends and employee costs restricted Ebitda margin contraction to 330 bps YoY,

  4. Godrej Consumer's Indonesia business topline growth remained muted but Ebitda margin expanded by 60 bps YoY and

  5. Africa, U.S., Middle East business grew by 16% in constant currency terms with Ebitda margin expanding by 50 bps YoY to 11.9%.

Click on the attachment to read the full report:

Systematix Godrej Consumer Products -Q2FY22 Result Update.pdf

DISCLAIMER

This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.