Godrej Consumer Products’ shares sank 11% to an intra-day low of Rs 1,101.65 on Monday after the company in its business update said that it expects weak growth in the third quarter of FY25. Due to weak business updates, the company’s stock price is taking a hit.
The company is expecting sales growth in the mid-single digit for the upcoming reporting quarter. Godrej Consumer Products blamed demand headwinds and unsupportive weather conditions behind the impact on growth.
“The demand conditions in India have been subdued for the past few months which is evident in FMCG market growth. Despite the demand conditions, GCPL has over the past six quarters consistently delivered an average organic UVG of ~7 per cent on the back of category development supported by innovations and media investments,” it said in its Q3 business update.
Godrej Consumer Products Q2 recap
A month back, the FMCG major reported its quarterly results for Q2 FY25. The posted a 13.52% year-on-year rise in its consolidated net profit to Rs 491.31 crore in Q2 FY25, helped by volume growth in the domestic market and Indonesia, compared to Rs 432.77 crore in Q2 FY24.
The company’s revenue grew 2.2% on year to Rs 3,647.11 crore for the quarter that ended September 2024 against Rs 3,568.36 crore in the corresponding period last fiscal.
GCPL Vs Nifty 50
The stock of GCPL has fallen almost 8% in the last five trading days. It has decreased by 7.5% in the last one month and 21% in the last six months. It has erased 1.4% of investors’ wealth from year to date. However, the stock has given a return of 8.2% in the last one year.
To compare, the benchmark index, Nifty 50 has risen 1.35 % in the last five trading sessions. The index has increased by 2% in the past one month and 6% in the past six months. It has risen more than 13% from year to date and 17% in the last one year.