Godrej Consumer Products will be reporting its first-quarter numbers on Aug 4. No surprises are expected, because the company's already given us the first quarter update and on the back of that the stock has moved to a record high.

However, more than the numbers, the biggest trigger for the stock has been the change in management. So, Sudhir Sitapati taking over from October 18 as MD and CEO is something that the street is keeping an eye on. The stock is trading at 46 times at a discount to other peers.

In its first-quarter update the company said that in the India Business, it has seen a high teens sort of growth. India accounts for nearly half of their overall revenue. In Indonesia, which is about a third of their revenues, they expect flat growth in terms of constant currency. Meanwhile, the company saw over 50% sales growth come by in Africa, US and Middle East, which accounts for about 15 to 20% of their sales.

So the street is expecting 21.5% percent revenue growth this time around, about Rs 2800 crore on the top line. Margins actually stay flattish with gross margins compressing because over the last one year, we've seen big moves in Palm oil and PFAD prices which are important inputs for the soap vertical.

The net profit likely to remain flat year on year but that's primarily because the same time last year the tax expense was just around 15 crores there was a big amount in terms of tax credit coming in as well. So the actual amount of Rs 400 crores is something the street is watching out

Volumes likely to grow between 14 to 15% on a favourable base of 3% growth and the India Business likely to see 18 to 20% growth coming by in the soaps vertical, hair colours likely to be around 10 to 12% and household insecticides is something that a company is betting on and street is expecting a15 to 20% growth there

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(Edited by : Aditi Gautam)

First Published:Aug 3, 2021 6:04 PM IST