Godrej Consumer Stocks Plunge 11% on Weak Q3

New Delhi, Dec 9 (PTI) Shares of Godrej Consumer Products tanked 11 per cent on Monday after the company issued a weak commentary on its business saying the demand conditions in India have been subdued for the past few months.

The scrip of Godrej Consumer plummeted 10.81 per cent to Rs 1,102 apiece on the BSE.

Reacting to the update, shares of other FMCG companies, too, tumbled in the trade.

Marico plunged 4.59 per cent to Rs 603.90, Tata Consumer fell 3.57 per cent to Rs 939.50 and Colgate-Palmolive slipped 3.55 per cent to Rs 2,782 on the BSE.

The index bellwether Hindustan Unilever also declined 3.35 per cent to Rs 2,401, Dabur India slumped 3.08 per cent to Rs 507.45 and Britannia fell 1.53 per cent to Rs 4,798.30 per apiece on the bourse.

The BSE FMCG Index also declined 426.36 points or 2.01 per cent to 20,744.84.

Meanwhile, the 30-share BSE Sensex went lower 106.69 points or 0.13 per cent to 81,602.43.

In a business update on Friday, Godrej Consumer said the demand conditions in India have been subdued for the past few months which is evident in FMCG market growth.

Despite the demand conditions, Godrej Consumer Products Ltd (GCPL) has over the past six quarters consistently delivered an average organic UVG (Underlying Volume Growth) of 7 per cent on the back of category development supported by innovations and media investments.

Further, GCPL added that the weather conditions have not been supportive (delayed winters in the North and cyclones in South India) to the Home Insecticides (HI) segment, contributing one-third to its standalone business.

This has impacted the Home Insecticides category growths in the current quarter.

It also said that the current inflationary environment has created pressure on the margins.