India's Godrej Consumer expects high-teens revenue growth in second quarter

India's Godrej Consumer Products anticipates double-digit revenue growth in the second quarter, with high single-digit growth expected across its various businesses. The company revealed its quarterly update just before the onset of Aasif Malbari's tenure as CEO and Managing Director, following the abrupt departure of former chief Sudhir Sitapati in August.

Expanding on this, Goodknight, a subsidiary of Godrej, anticipates a rise in consolidated underlying volume for the quarter ending September 30, with EBITDA growth in double digits. India's business division is projected to witness high-teens revenue growth and high single-digit volume growth, despite a slight dip in revenue due to trade inventory corrections amounting to around 100-150 basis points.

Godrej Agrovet anticipates a profit surge stemming from robust performance in its core sectors and a sizable land sale gain. The personal care and home care products line, led by Cinthol soaps, was buoyed by robust demand in India. However, input cost pressures intensified owing to inflation in crude-linked derivatives, palm oil, and other commodity inputs.

Godrej is countering these pressures through strategic pricing adjustments, cost-cutting initiatives, supply-chain optimizations, and stringent cost management. The company, yet to disclose its quarterly earnings release date, has been under scrutiny for its operational performance amidst fluctuating demand and rising input costs.

Godrej is optimistic about its Indonesia business posting high-teens revenue growth and expects robust double-digit revenue and volume growth from Africa, USA, and Middle East operations. Despite these challenges, the company remains on track to meet its full-year target for fiscal 2027 and anticipates surpassing it in certain areas.