(Reuters) -India’s Godrej Consumer Product 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.
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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 last month missed quarterly profit estimates due to a slowdown in urban demand.
PEER COMPARISON
Estimates (next 12 Analysts’
months) sentiment
RIC PE EV/EBI Revenue Profit Mean # of Stock to Div
TDA growth (%) growth rating* analyst price yield
(%) s target** (%)
Godrej Consumer 53.14 36.98 9.75 22.30 Buy 33 0.96 1.58
Products Ltd
Britannia 53.20 36.72 8.83 12.28 Buy 34 1.01 1.37
Industries Ltd
Marico Ltd 51.56 37.23 11.57 12.31 Buy 38 0.95 1.45
Hindustan 50.31 34.83 4.93 4.49 Buy 17 0.93 1.83
Unilever Ltd
* 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
(Reporting by Nandan Mandayam in Bengaluru; Editing by Shinjini Ganguli)
