India’s Godrej Consumer expects demand recovery after tax-cut disruption
- Godrej posted a 4% rise in revenue last quarter
India’s Godrej Consumer Products said on Tuesday demand conditions improved during the third quarter, following a temporary sales disruption due to the government’s sweeping tax cuts.
The company, known for its ‘Cinthol’ brand of soaps and ‘Goodknight’ mosquito repellent, said it expects close to double-digit revenue growth and double-digit core earnings growth for the quarter ended December 31.
Godrej posted a 4% rise in revenue last quarter.
“We remain confident of a gradual improvement in consumption over the coming quarters, supported by falling inflation and improving affordability following lower GST rates,” the company said in a statement.
Second-quarter earnings for several Indian consumer goods companies were hurt by temporary sales disruptions as consumers deferred purchases after the government’s tax cuts went into effect in September.
The update follows smaller rival Dabur, which has also seen signs of demand recovery in the third quarter and expects consolidated revenue to grow in the mid-single digits from a growth of 3% a year earlier.
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