India demand slumped in last 12 days of March: GCPL

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Published: April 10, 2020 6:30:11 AM

The company said that in India, demand was steady till the coronavirus outbreak and slumped due to disruption of both back-end and front-end supply chains in the last 12 days of March.

However, in rupee terms, the company expect the performance to be muted.However, in rupee terms, the company expect the performance to be muted. (Representative image)

Godrej Consumer Products (GCPL) will report revenue decline in the high teens in its India business for the quarter ended March 31, 2020, the company said in an exchange filing.

The company said that in India, demand was steady till the coronavirus outbreak and slumped due to disruption of both back-end and front-end supply chains in the last 12 days of March.

A low double-digit sales decline was seen in the performance of its distributors, implying that their stock levels are getting depleted.

“We are awaiting data on the stock levels on general trade shelves. We believe there should be a gradual bounce-back in the near term driven by restoration of the supply chain, higher consumption for personal wash and an ongoing favourable season for household insecticides,” the company said.

Among other geographies, in Indonesia, GCPL recorded close to a mid single-digit constant currency sales growth, in spite of disruptions caused by the novel coronavirus. “The country is following extreme social distancing practices as of now,” it said.

In Africa, the US and the Middle East, the company recorded a decline in the teens, in constant currency terms, amid disruptions caused by the novel coronavirus in many of its countries of operations.

Meanwhile, performance in Latin America is expected to be steady in constant currency terms. However, in rupee terms, the company expect the performance to be muted.

“International business is expected to record around mid single-digit sales decline in INR terms resulting in consolidated sales declining around low double digit in INR terms for the quarter,” the company said.

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