Godrej Consumer Products Ltd (GCPL), an Indian multinational company, has reported a strong performance in the March quarter of 2023. The company expects to report double-digit growth in rupee terms and mid-single-digit volume growth, led by gross margin recovery and continued marketing investments, resulting in double-digit solid EBITDA growth.

GCPL’s business in India has surpassed expectations, especially in volume. The company achieved double-digit home and personal care growth, contributing to its overall performance. In Indonesia, there has been a gradual recovery with mid-single-digit sales growth, while the Africa, US, and Middle East businesses experienced higher than mid-single-digit sales growth.

According to Motilal Oswal Financial Services, the decline in palm oil prices is expected to improve GCPL’s gross margins sequentially and YoY. GCPL is a major player in household insecticides, air care, and hair care in emerging markets such as India, Indonesia, and Africa. In household insecticides, the company is the leader in India, the second-largest in Indonesia, and is expanding its presence in Africa.

The FMCG sector is expected to witness a gradual recovery in growth rates, and consumer demand has remained steady through the March quarter. GCPL’s domestic branded business growth was strong, registering volume and value growth in teens. This is in line with the company’s strategy of volume-driven category development.

GCPL’s stock has outperformed the market in the past month, surging 6%, compared to a 0.51% decline in the S&P BSE Sensex. The company has hit a 52-week high of Rs 978.50, resulting in a Rs 1-trillion market capitalisation.