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Godrej Consumer Products said it expects operating margins to contract during the quarter driven by a lag between the rise in input costs and increase in end consumer pricing. During the quarter, demand trends in categories across the key countries remained steady.
India sales growth is expected to be in double-digit during the second quarter, driven largely by volume growth and calibrated price increases. "We expect our 2-year CAGR to be in the double digits. We witnessed broad-based sales growth in our Home Care and Personal Care categories," it added.
In Indonesia, the company expects a marginal decline in constant currency sales. In Godrej Africa, USA and Middle East, growth momentum continued across key countries of operations. The company expects to deliver constant currency sales growth in mid-teens. Here too, the firm expects 2-year CAGR to be in the double digits. The company said it continued its focus on driving sustainable, profitable sales growth.
The firm expects sales growth in its Latin America and SAARC businesses to be soft.
Godrej Consumer Products reported 4.76% rise in consolidated net profit to Rs 413.66 crore on 23.87% increase in net sales to Rs 2,862.83 crore in Q1 FY22 over Q1 FY21.
Godrej Consumer Products is a leading emerging markets company. It ranks among the largest household insecticide, air care and hair care players in emerging markets of India, Indonesia and Africa.
Shares of Godrej Consumer Products fell 0.57% to Rs 1038.05. The stock hit a high of Rs 1062.05 and a low of Rs 1034.25 so far.
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