India's Godrej Consumer misses profit estimates due to higher costs

Godrej Consumer Products

06/05/2025 15:18

May 6 (Reuters) - India's Godrej Consumer Product GOCP.NS reported a fourth-quarter profit that missed analysts' estimates on Tuesday, as a jump in costs overshadowed the gains from sustained demand for its home care products.

The 'Goodknight' mosquito repellent maker posted a consolidated net profit of 4.12 billion rupees ($48.9 million), below analysts' average estimate of 4.82 billion rupees, according to data compiled by LSEG.

In the year-ago period, the company reported a loss of 18.93 billion rupees due to a one-time charge related to restructuring costs.

Revenue from its India business, its biggest market, rose 7.4% in the quarter, driving the company's total revenue 6.3% higher to 35.78 billion rupees.

For further earnings highlights, click nFWN3RE0RQ.

KEY CONTEXT

The company's quarterly results were also helped by steady performance in its international businesses, which include Indonesia and Africa.

The results come at a time when the industry is struggling with slowing urban consumption amid high food prices and slow wage hikes.

Larger rival Hindustan Unilever HLL.NS last month missed quarterly profit estimates due to a slowdown in urban demand.

PEER COMPARISON

Estimates (next 12 months)
Analysts' sentiment
RIC
PE
EV/EBITDA
Revenue growth (%)
Profit growth (%)
Mean rating*
# of analysts
Stock to price target**
Div yield (%)
Godrej Consumer Products Ltd
GOCP.NS
53.14
36.98
9.75
22.30
Buy
33
0.96
1.58
Britannia Industries Ltd
BRIT.NS
53.20
36.72
8.83
12.28
Buy
34
1.01
1.37
Marico Ltd
MRCO.NS
51.56
37.23
11.57
12.31
Buy
38
0.95
1.45
Hindustan Unilever Ltd
HLL.NS
50.31
34.83
4.93
4.49
Buy
17
0.93
1.83

* The mean of analysts' ratings standardised to a scale of Strong Buy, Buy, Hold, Sell and Strong Sell

** The ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading above the PT

JANUARY TO MARCH STOCK PERFORMANCE

-- All data from LSEG

-- $1 = 84.2560 Indian rupees

GOCP v Peers https://tmsnrt.rs/3EFsOvh

 (Reporting by Nandan Mandayam in Bengaluru; Editing by Shinjini Ganguli)

 ((Nandan.Mandayam@thomsonreuters.com; Mobile: +91 9591011727;))