Godrej Consumer Products Reports Mixed Q3 FY24-25 Results Amid Operational Challenges

Godrej Consumer Products, a prominent player in the FMCG sector, has reported its financial results for the third quarter of FY24-25, revealing a challenging performance. The company has experienced an adjustment in its evaluation, with its score reflecting a shift over the past three months.
In terms of net sales, Godrej Consumer achieved its highest quarterly figure in the last five quarters, reaching Rs 3,768.43 crore. This indicates a positive near-term sales trend. However, the company faces significant challenges. The operating profit margin has dropped to 20.06%, marking the lowest level in five quarters, which suggests a change in operational efficiency.

Additionally, the debtors turnover ratio has fallen to 8.47 times, the lowest in the last five half-yearly periods, indicating a slowdown in the pace of settling debts. Profit before tax, excluding other income, stands at Rs 604.34 crore, down 5.6% from the average of the previous four quarters. Furthermore, cash and cash equivalents have decreased to Rs 295.10 crore, the lowest in the last six half-yearly periods, raising concerns about short-term liquidity. The debt-equity ratio has also increased to 0.32 times, suggesting a higher reliance on borrowing for operations.

Discover the Latest Mojo Score and Financial Trend Performance - SignUp in less than 2 Minutes and get FREE Premium Access.