Implementation of new GST slabs to lower the duty has resulted in some short-term adjustments across trade in the domestic market, Godrej Consumer Products Ltd (GCPL) said while projecting a ‘low-single digit’ volume growth on a standalone basis in the September quarter.
The GST rate reductions have resulted in some short-term adjustments across trade channels, as distributors and retailers focused on liquidating existing inventories, said Godrej Consumer in its quarterly updates.
This has delayed the flow of new orders and temporarily deferred consumer purchases, impacting both growth and profitability, the FMCG business of Godrje Industries Group added.
“Consequently, our Standalone business is expected to deliver mid-single digit value growth, supported by low-single digit UVG,” it said.
However, GCPL, which markets brands as Cinthol, Godrej No1, Good Knight and HIT, said the government’s recent GST reforms represent an ‘encouraging step’ towards strengthening consumer …
