Godrej Consumer leads losers

Through the week, Godrej Consumer Products has been hitting new highs consistently; in anticipation of a very good Q1 performance. The numbers came in yesterday after market hours and they were disappointing. This has led to a sell off on the counter today; punters booking profits after the buildup. The stock is currently the top loser on the BSE, going down almost 5% to Rs.987 levels from yesterday’s close of Rs.1034.75.  

A very muted growth in sales on account of GST and higher costs led to a 8% (YoY) drop in net profit for Q1FY18 at Rs.255 crore. Net sales were up 3% at Rs.2267 crore. June sales fell due to de-stocking for implementation of GST. Its domestic revenue rose 5% while international was up 11%.

Total expenses during the quarter rose 6.5% at Rs.1999 crore. EBITDA was down 7% at Rs.387 crore and margins declined 192 bps to 17%.