Jan 23 (Reuters) - India's Godrej Consumer Products posted a marginal decline in quarterly profit on Friday, hurt by a one-time charge from new labour codes and weakness in its Indonesia business.

Consolidated net profit fell marginally to 4.979 billion rupees ($54.16 million) for the quarter ended December 31, from 4.983 billion rupees a year earlier. Without exceptional items and one-off charges, its net profit climbed 14%.

Revenue from sale of products rose nearly 9% to 40.79 billion rupees, led by growth in India and Africa even as the company's Indonesia business declined.

For further earnings highlights, click here. [FULL STORY]

KEY CONTEXT

Godrej Consumer is contending with intense competition as well as a broader economic slowdown in Indonesia, which in 2024-25 accounted for about 14% of its total revenue. It expects a meaningful recovery from fiscal 2027 onwards.

That comes in contrast to a nascent recovery in demand in India after sales took a hit in the second quarter, when customers deferred purchases following the announcement of consumption tax cuts.

India's new labour codes - the country's biggest overhaul of workers' laws in decades - have dragged the profit of large corporates, including those of Wipro and Infosys.

PEER COMPARISON

    Valuation Esti Ana    

(next 12 mate lys

months) s ts'

(nex sen

t 12 tim

mont ent

hs)

  RIC PE EV Pr Reve pro Mea # Stock Div

/E ic nue fit n of to yie

BI e/ grow gro rat ana price ld

TD Sa th wth ing lys targe (%)

A le (%) (%) * ts t**

s

Godrej GOC 50. 28 7. 9.24 18. BUY 34 0.93 1.6

Consumer P.N 28 .7 47 62 1

Products Ltd S 7

Hindustan HLL 48. 33 8. 7.49 9.2 BUY 21 0.87 1.8

Unilever Ltd .NS 58 .5 19 2 0

9

Nestle India NES 69. 44 10 10.3 13. HOL 35 1.02 1.0

Ltd T.N 25 .2 .2 2 22 D 1

S 1 8

Dabur India DAB 44. 33 6. 8.39 11. HOL 37 0.98 1.5

Ltd U.N 44 .0 49 37 D 2

S 1

* The mean of analyst ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell

** The ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading above the PT

OCTOBER-DECEMBER STOCK PERFORMANCE

-- All data from LSEG 

($1 = 91.9310 Indian rupees)

(Reporting by Komal Salecha in Bengaluru and Praveen Paramasivam in Chennai; Editing by Ronojoy Mazumdar)