Shares of Godrej Consumer Products Ltd (GCPL) rose over 3% today after the FMCG firm said it expects to clock double-digit sales growth in the December quarter backed by low single-digit volume growth. The statement comes at a time when the Indian FMCG sector is witnessing slow growth led by poor rural consumption and a slowdown post the festive season.
There has also been a sequential improvement from high single-digit sales growth and mid single-digit volume decline in the previous quarter.
The stock of GCPL gained up to 3.55% to Rs 920.10 against the previous close of Rs 888.85 on BSE. Market cap of the firm rose to Rs 93,770 crore. The FMCG major’s stock has lost 3.73 per cent in the last one year and risen 5 per cent since the beginning of this year.
The GCPL stock has gained after two sessions of consecutive fall. The share is trading higher than the 5 day, 10 day, 20 day, 50 day, 100 day, and 200 day moving averages.
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In its Q3 business update, the firm said, “The growth is broad-based and led by around double-digit sales growth in both Home Care and Personal Care. Mentioning the improving performance of its overseas business, the Godrej Group-led firm said, “Our Indonesia business has started to see gradual recovery in performance, with constant currency sales decline in low single digits. However, growth ex-Hygiene, is marginally positive. Godrej Africa, USA, and Middle East (GAUM) continues its strong sales growth momentum, clocking double-digit sales growth in constant currency terms.”
“The quality of our profits should see meaningful improvement, led by Gross Margin recovery and continued marketing investments translating to high single-digit EBITDA growth,” the FMCG firm added.
Meanwhile, the 30-stock Sensex was trading 267 points lower at 60,390 and Nifty lost 42 points to 18,000 during the fag end of the trading session. The market is trading lower for the second consecutive session today.