Stock in news: Godrej Consumer Products plans capital expenditure of Rs 900 cr

Heavy losses in the metals, utilities and telecommunications sectors caused the Indian headline indices to close the session lower. Financial services and consumer durables sectors, on the other hand, recorded significant gains. The BSE Sensex lost 0.16% to 65,846 level at the close. The Nifty 50 index fell 0.13% to a level of 19,570.

Godrej Consumer Products Ltd, a manufacturer of personal care products, gained attention after announcing substantial capital investments and quarter performance. An investment of Rs 900 crore was announced by the company for the setting up of new manufacturing plants in Madhya Pradesh and Tamil Nadu.

Considering the company’s quarterly performance, on a consolidated basis it reported a growth of 10.37% from Rs 3,124.97 crore registered in Q1FY23, recording total revenue of Rs 3,448.91 crore in Q1FY24. It has reported operating profit growth of 29.84%. Compared to the same quarter last year, the net profit for the first quarter of FY24 fell 7.62%, from Rs 345.12 crore to Rs 318.82 crore.

With household insecticides and air fresheners continuing to consistently provide significant double-digit growth, the Home Care category recorded a 14% year-on-year growth. In addition, the Personal Wash segment reported high-single-digit volume growth. The company’s goal is to attain 35% renewables in its energy mix while reducing water intensity by 40% and producing zero waste for landfill. It also intends to establish efficient waste management systems in seven Indian municipalities, diverting over 5,000 MT of waste from landfills.

Godrej Consumer Products Ltd is a fast-moving consumer goods company that manufactures and markets household and personal care products. Shares have gained 16% in the previous year and are currently trading at Rs 1,011 per share, with a 52-week high of Rs 1,101 per share on the BSE.

Keep a close eye on this stock for the upcoming sessions!

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet, and is subject to changes. Please consult an expert before making related decisions.