GCPL organised a conference call, led by Dharnesh Gordhon (Business Head – Godrej Africa, USA & Middle East), to discuss its business performance and strategy for the GAUM region.
Highlights: Competitive intensity; Over the past one-year, big players emerged stronger in key geographies; The management’s drive to improve product availability and boost distribution has already resulted in early gains; and it has increased product availability and distribution.
Currently, its coverage has grown by over 2.5x from CY20 levels. The next phase of growth will be driven by the broadening of its portfolio. It is already seeing a massive acceleration in its FMCG portfolio.
The commentary on GCPL’s GAUM business is improving, with the management guiding at a margin expansion of 150bp YoY in FY23, despite an adverse currency exchange rate. Excluding the same, the improvement in margin would have been 600-700 bps.
Better capital allocation, a moratorium on acquisitions, and an improved performance in the GAUM region was already witnessed before the new CEO took command in Oct’22.
As investments by the new CEO are aimed at boosting growth in the high margin, high RoCE domestic business, its medium-term earnings growth outlook remains strong.