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Mid-single-digit volume growth with stable margins in the India business

Godrej Consumer Products (GCPL) released its pre-quarterly update for 4QFY25. Here are the key takeaways:

India performance

* Management focus for 4QFY25 remained on reviving the Underlying Volume Growth (UVG) growth trajectory in the standalone business and holding on to its 3QFY25 EBITDA margin levels despite significant cost pressure.

* The standalone business growth is expected to be in the mid-single digits, while revenue growth is likely to be in the high-single digits. This has been driven by a mid-teens UVG in Home Care while the Personal Care segment would witness a mid-single-digit decline.

* Personal Care continues to go through a price-volume rebalancing on account of rising input costs.

* EBITDA margins are likely to be in a similar range as 3QFY25 despite high inflation in Palm and related derivatives.

International business

* The company’s international businesses continue to perform in line with their relevant strategic objectives.

* The Indonesia business is expected to deliver mid-single-digit UVG and lowsingle-digit revenue growth.

* The GAUM (Godrej Africa, USA, and Middle East) organic business is likely to deliver strong double-digit organic UVG and revenue growth.

Consolidated business

* At a consolidated (organic) level, the company expects a high-single-digit INR sales growth with a mid-single-digit UVG.

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