Shares of Godrej Consumer Products Ltd (GCPL) were trading over 2 percent higher during Wednesday's afternoon deals after the Mumbai-based company shared its performance update during the June 2023 quarter (Q1FY24). At 1:42 pm, the scrip was trading 2.31 percent higher at Rs 1,086.45 apiece on the NSE.

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The stock has gained 5 percent in the last five trading sessions while it has risen 22 percent on a year-to-date basis. In the last one year, GCPL shares have rallied 30.69 percent.

The fast-moving consumer goods company estimated that its sales increased in the double-digit percentage range in Q1FY24, driven by strong demand for its home care and personal care products.

The company's home care business unit, which houses the Goodknight and HIT brands, posted double-digit volume growth in the quarter under review, while it logged a higher-than-mid-single digit volume growth in its personal care division, home to Cinthol soaps.

"In India, overall consumer demand remained steady as seen in the previous few quarters. Our organic business continued to deliver robust performance with double-digit volume growth. This is in line with our strategy of volume driven category development," Godrej Consumer said in a statement. The business made up nearly 57 percent of its total revenue in the immediately previous quarter.

Godrej Consumer estimated its overall sales volumes, including in overseas markets, rose in the high-single digit percentage range.

"Our Indonesia business delivered steady performance on the back of structural changes implemented last year. Constant currency sales is expected to grow in mid-teens," the company said.

"Godrej Africa, USA, and Middle East (GAUM) continued to deliver consistent performance with constant currency sales growth in mid-teens. However, in INR terms, there was an adverse currency translation impact resulting in high-single digit sales growth," the statement read.

The company also said its "quality of profits has seen sustained improvement, led by robust gross margin expansion and ongoing category development investments." It added, "This should translate to strong EBITDA growth."

(Edited by : C H Unnikrishnan)

First Published:Jul 5, 2023 2:13 PM IST