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Godrej Consumer Posts Q4 Profit Recovery but Faces Investor Concerns Over Margins

The company swung to a Rs 412 crore net profit in Q4 FY25 but saw shares dip 3% as rising input costs and soft urban demand weighed on margins.

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Overview

  • Godrej Consumer Products reported a consolidated net profit of Rs 412 crore for Q4 FY25, recovering from a Rs 1,893 crore loss in the same quarter last year.
  • Revenue grew by 6.2% year-on-year to Rs 3,598 crore, with organic volume growth of 6%, led by India at 4% and Indonesia at 5%.
  • EBITDA margins contracted to 21.1% from 22.3% a year ago, driven by a more than 50% surge in palm oil costs and urban consumption headwinds in India.
  • The company's Africa, Middle East, and U.S. markets showed strong organic sales growth of 12% in constant currency, while Latin America saw an 11% decline in rupee terms.
  • Shares fell 3.14% to Rs 1,211.50 following the results, as investors remained concerned about sustained margin pressures and slightly softer domestic volume growth.