Consolidated EBITDA declined by 15% YoY while consolidated EBITDA margins decreased by 450 bps 17.1% in the second quarter.

During the quarter, the India business sales grew by 8% to Rs 1,953 crore but volume declined by 5%. While the Home Care category recorded a rise of 2%, Personal Care category reported a growth of 18%. EBITDA declined by 5% to Rs 422 crore in Q2 FY23.

Meanwhile, Indonesia business delivered a weak performance with a sales decline of 11% in constant currency terms. Sales excluding Hygiene (Saniter) saw a growth of 8% in constant currency terms. EBITDA margins, contracted by 930 bps year on year due to consumption of high cost inventory, upfront marketing investments, high hygiene comparator, and scale deleverage.

The company's Africa, USA and Middle East cluster delivered double-digit sales growth of 13% in constant currency terms (3-year CAGR of 13%). Dry Hair and FMCG category both grew in double digits.

Sudhir Sitapati, managing director and CEO, CGPL, said: “We delivered a steady performance in Q2 FY23. Overall sales grew by 7% with 3-year CAGR of 9%. However, this growth was driven by pricing. We continue to believe that with the relatively nondiscretionary, mass pricing of our portfolio and good performance on market shares, volume growth will return in the short term.

Our overall EBITDA declined by 15% driven by consumption of high cost inventory, upfront marketing investments and a weak performance in our Indonesia and Latin America & SAARC businesses. PAT without exceptional items and one-offs declined by 21%.

With inflationary pressures abating, we expect recovery in consumption and gross margins alongside continued higher marketing investments with a significant focus on reducing controllable costs.”

Godrej Consumer Products is an Indian consumer goods company. The company's products include soap, hair colorants, toiletries and liquid detergents.

The scrip declined 0.84% to currently trade at Rs 819.25 on the BSE.