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retail | IST

Godrej Consumer Products expects double-digit growth in H2FY22; sees offtake in staples, discretionary

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Godrej Consumer Products expects double-digit growth for the rest of the year (FY22), Sameer Shah, chief financial officer (CFO), told CNBC-TV18. Shah also said that out-of-home categories are seeing a strong comeback and rural India is growing well. He mentioned that the company will look at expanding its personal care portfolio over the next few years.

Godrej Consumer Products expects double-digit growth for the rest of the year (FY22), Sameer Shah, chief financial officer (CFO), told CNBC-TV18. Shah also said that the company’s seeing a strong comeback in its out-of-home category and that rural India is growing well.
Godrej Consumer Products stock has seen a 41 percent move in the last six months alone, while in the last one year, it’s gone up by around 38 percent. The stock is currently trading at around Rs 1028 on the NSE. The company also posted a steady Q2 update, where revenue growth is seen in high single digits but margin contracted owing to input cost inflation.
“We are seeing consumer offtake for staples as well as discretionary, now relatively strong. At the beginning of the year, we had laid out our ambition of driving a double-digit sales growth. In the first half of the year, we were very much on track. Hence, we do expect that for the rest of the year also, we should continue to see double-digit growth,” Shah said.
On demand, he said, “Staples continue its growth momentum; discretionary categories are seeing an uptick, which we saw post first wave (COVID-19), but it paused in and around the second wave and post that, we have again seen discretionary or out-of-home categories seeing a strong uptick. Therefore, we do expect that to continue. The hygiene category will normalise at levels much higher than pre-COVID, but definitely not at the peak of COVID levels. So those categories also will reset in its own way.”
The company will look at expanding its personal care portfolio over the next few years, he mentioned.
“We expect the rural consumption to be very strong, at least in the medium-term. So, net-net, we do expect strong growth momentum and more importantly, consumer offtake is looking extremely robust,” said Shah.
 
For the entire management interview, watch the video