Godrej Consumer eyes better performance

GODREJ CONSUMER PRODUCTS’ Ltd consolidated volume growth improved sequentially to 5%/8% y-o-y, with India ex-soaps volumes rising in the mid-teens.

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The company expects India UV volume growth to strengthen further q-o-q. Consolidated sales grew 10% y-o-y. Household insecticides (HI) posted high single-digit volume growth, and with strong traction from its new molecule launch, we believe it could surpass its high single-double-digit sales growth guidance. In soaps, earlier price hikes and grammage cuts continued to weigh on volumes, resulting in flat y-o-y sales. The company expects soap volumes to normalise in the coming quarters as price hikes anniversary in Q2.