Godrej Consumer Sees Demand Recovery After Tax-Cut Disruption

India’s Godrej Consumer Products (GOCP.NS) reported signs of improving demand in the third quarter following temporary disruptions caused by government tax cuts. The company, known for its Cinthol soaps and Goodknight mosquito repellent, expects near double-digit revenue and core earnings growth for the quarter ending December 31.

Godrej posted a 4% revenue increase in the previous quarter and attributed the recovery to falling inflation and improved consumer affordability after lower GST rates. The company expressed confidence that consumption will gradually strengthen over the coming quarters.

Smaller rival Dabur (DABU.NS) has also observed a recovery in demand, projecting consolidated revenue growth in the mid-single digits, up from 3% growth a year earlier. Both companies are benefiting from the post-tax-cut normalization in consumer purchases.

Pic courtesy: google/ images are subject to copyright