Categories Concall Highlights, Consumer, Earnings
Godrej Consumer Products Limited Q4 FY22 Earnings Conference Call Insights
Key highlights from Godrej Consumer Products Limited (GODREJCP) Q4 FY22 Earnings Concall
- For FY23, GODREJCP expects double-digit top line growth with low-single digit volume growth. But added that if the palm oil costs moderate by about 7-8%, the company should see some margin expansion, especially in 2H2.
- Abneesh Roy from Edelweiss asked about Africa business margins in the near term and medium term. Sameer Shah CFO answered that, looking at the overall margins, the company doesn’t expect any margin deterioration in FY23. However, if it happens, GODREJCP should continue to be on the trajectory of gradual margin expansion on a Y-o-Y basis even in FY23.
- Percy Panthaki of IIFL enquired about incense stick market share, if it’s reached pre-COVID levels. Sudhir Sitapati MD replied that it’s roughly where it was pre-COVID around 13-14%. However, it’s not growing at the rapid pace that it was growing pre-COVID, at least in the post-COVID space.
- Priyam Daga from VT Capital asked what the company has done to turnaround the Indonesia business. Sudhir Sitapati MD answered that the big change made from Nov. or Dec. was to increase the media support. The strategy is to increase ATL, which is done. In terms of market share, GODREJCP is seeing some movement, but will take a couple of quarters to show this in sales.
- Abhijeet Kundu with Antique Stock Broking asked about the categories benefiting from the intense summer in FY23. Sudhir Sitapati MD replied that the soap category does benefit. But household insecticide doesn’t work in favor of hot periods.
- Trilok of Dymon Asia asked about company’s priority on margin improvement vs. penetration on its segments. Sudhir Sitapati MD answered that GODREJCP’s objective is primarily to get category volume growth first. So GM is important, but volume growth and category development are more important.
- Krishnan Sambamoorthy from Motilal Oswal enquired on Indonesia, if the margin trajectory will mirror the sales trajectory. Sudhir Sitapati MD clarified that it will happen. It may take two quarters. So because of judicious price increases and as growth comes back, GODREJCP will get back its leverage.
- Gaurang Kakkad from Haitong Securities asked about the growth in urban and rural areas in the India business. Sudhir Sitapati MD answered that since GODREJCP has been under-indexed in rural, rural growth have been higher in terms of demand trends. But looking at full year, nothing much has changed.
- Gaurang Kakkad from Haitong Securities enquired if the company is on track for the guidance of premiumization, product mix improvement, and cost efficiencies and if it can be achieved in FY26-27. Sudhir Sitapati MD answered that 4Q22 was a miss but GODREJCP is on track to steadily increase margins.
- Aniket Sethi from ICICI Securities asked in which areas the company has lost market share. Sudhir Sitapati MD said the company has lost in liquid detergent mainly because of the definition of liquid detergents. There is a big movement in main wash to move from powders to liquids, and Ezee doesn’t participate in main wash in detergents.
Cochin Shipyard Ltd (COCHINSHIP) Q4 FY22 Earnings Concall Transcript
Cochin Shipyard Limited (NSE:COCHINSHIP) Q4 FY22 Earnings Concall dated May. 26, 2022 Corporate Participants: Madhu S Nair -- Chairman & Managing Director Jose V J -- Director Finance Analysts: Vastupal Shah
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