Shares of Godrej Consumer Products jumped over 5 percent on Wednesday after the fast-moving consumer goods company (FMCG) said its India business would report double-digit growth in sales in the June quarter.

“In India, we expect to deliver early double-digit sales growth on a high base,” the company said in its quarterly business update.

At a consolidated level, Godrej Consumer Products expects to deliver high single-digit sales growth.

However, it sees operating margin shrinking on a yearly basis during the April-June quarter considering higher raw material costs, upfront marketing investments and weak performance in Indonesia.

“However, with inflationary pressures abating and significant correction in palm oil derivatives and crude oil, which are some of our key raw materials, we do expect a recovery in consumption and gross margins in the upcoming quarters,” the company said.

At 14:29 IST, shares of the consumer products company were trading 4.8 percent higher at Rs 872.15 on the BSE.

In Indonesia, with hygiene performance waning after COVID-19 and a large Hygiene comparator in base, Godrej Consumer Products expects a high single-digit decline in sales. The sales performance, excluding hygiene, was largely flat, it added.

Talking about Godrej Africa, the US, and the Middle East, the company continued its growth momentum across most of its key countries of operations. “We expect to deliver double-digit sales growth, with a continued focus on driving sustainable, profitable sales growth,” the FMCG player said in the update.

Furthermore, the company expects a constant currency sales growth in the high teens for its Latin America business.

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