Godrej Consumer Stocks Soar 8% to Yearly High After Q4 Results Exceed Expectations

  • Godrej Consumer Products’ share price rallied nearly 8% to hit a 52-week high of ₹1,349.65 apiece on the BSE after the company’s Q4 earnings surpassed analysts’ expectations.
  • The FMCG major posted a net loss of ₹1,893 crore in Q4FY24 due to a one-time exceptional loss of ₹2,376 crore during the March quarter, attributed to the reorganisation of its Africa business.
  • Despite the net loss, the company’s revenue rose 6% to ₹3,385.61 crore from ₹3,200.16 crore YoY, with the consolidated volume growing at 12%.

Godrej Consumer Products’ Q4 earnings beat expectations, driving the share price to a 52-week high, despite a net loss due to a one-time exceptional loss.

Godrej Consumer Products’ Q4 Earnings Overview

Godrej Consumer Products reported a net loss of ₹1,893 crore in Q4FY24, compared to a net profit of ₹452 crore in the same period last year. This loss was primarily due to a one-time exceptional loss of ₹2,376 crore during the March quarter, which was a result of the reorganisation of its Africa business. Despite this, the company’s revenue rose 6% to ₹3,385.61 crore from ₹3,200.16 crore YoY, and the consolidated volume grew at 12%.

Performance Across Different Segments

The home care category grew by 6%, and personal care grew by 4% on the back of volume-led growth. The India business volume grew by 15%, and Indonesia volume grew by 12%. The company’s board of directors also recommended an interim dividend of ₹10 per share for the financial year 2023-24.

Analysts’ Take on Godrej Consumer Products’ Performance

Emkay Global Financial Services noted that Godrej Consumer Products’ Q4FY24 results beat their expectations, with inline sales growth of 6% and better margin at 22.3% driving the EBITDA beat of 6%. The brokerage firm maintained an ‘Add’ rating on Godrej Consumer Products shares, with a March 2025 target price of ₹1,350 per share. Foreign brokerage firm Jefferies also noted that Godrej Consumer’s Q4 results were above its estimates and has a ‘Buy’ call with a share price target of ₹1,520 apiece.

Conclusion

Despite a net loss in Q4FY24 due to a one-time exceptional loss, Godrej Consumer Products’ performance has been viewed positively by analysts, with the company’s share price reaching a 52-week high. The company’s focus on volume-led growth and strategic reorganisation efforts are expected to drive its future performance.

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