Views on Godrej Consumer 3QFY2014 results - Angel Broking

Views of Mr. V. Srinivasan (Research Analyst - FMGC, Angel Broking) on Godrej Consumer's 3QFY2014 results:

"Godrej Consumer's (GCPL) 3QFY2014 results were below estimates. The company posted a 17% yoy growth in top-line to Rs. 1,979cr. The company's India and International businesses posted revenue growth of 13% yoy and 22% respectively. International business posted constant currency growth of 13%. Domestic growth was impacted by weak off-take in Household insecticides category, due to weak demand in southern and eastern states on account of poor monsoon. Soaps category posted value and volume growth of 6%, despite category de-growth in both volume and value terms. Hair colors segment posted a strong 37% yoy value growth, which was significantly ahead of category growth. Growth in International front was lead by Africa business which posted a growth of 29% (constant currency growth of 21%). GCPL's OPM fell by 107bp yoy to 15.5%. OPM was impacted due to the divestment of foods business in Indonesia and also increase in fuel costs and wage hikes in the country. Bottom-line rose by 13.6% yoy to Rs. 196cr. We maintain a neutral rating on the stock."

Source : Equity Bulls

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