Godrej Consumer Stock Plunges 9%

Shares of Godrej Consumer Products plunged 9 per cent on Monday after the FMCG company reported a weak mid-quarter business update, highlighting demand headwinds.

The scrip of the company declined 8.72 per cent to close at Rs 1,127.90 apiece on the BSE.

On the bourse, stocks of other FMCG companies too tumbled in the trade.

Shares of Tata Consumer by 4.18 per cent to close at Rs 933.55, Marico by 4.07 per cent to end at Rs 607.20 per piece, and the index bellwether Hindustan Unilever slipped 3.37 per cent to close at Rs 2,400.45 apiece on the exchange.

The scrip of Colgate-Palmolive (India) slipped 2.76 per cent to finish at Rs 2,804.95, and Britannia Industries by 1.63 per cent to settle at Rs 4,793.75 per share on BSE.

The BSE FMCG Index slumped 408.75 points or 1.93 per cent.

The 30-share BSE Sensex declined 200.66 points or 0.25 per cent to settle at 81,508.46.

In a business update on Friday, Godrej Consumer said the demand conditions in India have been subdued for the past few months which is evident in FMCG market growth.

Despite the demand conditions, Godrej Consumer Products Ltd (GCPL) has over the past six quarters consistently delivered an average organic UVG (Underlying Volume Growth) of 7 per cent on the back of category development supported by innovations and media investments.

Further, GCPL added that the weather conditions have not been supportive (delayed winters in the North and cyclones in South India) to the Home Insecticides (HI) segment, contributing one-third to its standalone business.

This has impacted the Home Insecticides category growth in the current quarter.

It also said that the current inflationary environment has created pressure on the margins.