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Godrej Consumer Second Quarterly Net Profit Reports 12% Increase

Net sales of the company during the quarter under review stood at Rs 2,496.93 crore as against Rs 2,436.64 crore in the year-ago period

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FMCG major Godrej Consumer Products Ltd. reported 12.56 per cent increase in its consolidated net profit to Rs 361.95 crore for the September quarter on higher income and volume growth. It had posted the net profit of Rs 321.54 crore during the July-September quarter of last fiscal, Godrej Consumer Products Ltd (GCPL) said in a regulatory filing.

Net sales (including excise duty) of the company during the quarter under review stood at Rs 2,496.93 crore as against Rs 2,436.64 crore in the year-ago period, up 2.47 per cent. “In India, we remained agile and navigated the GST driven channel disruptions well to deliver 10 per cent volume growth (on a base of 9 per cent growth in 2QFY17), alongside delivering a strong EBITDA growth of 24 per cent,” GCPL Executive Chairperson Nisaba Godrej said.

Revenue from Indian operations during the period was Rs 1,363.78 crore compared to Rs 1,319.46 crore during the same period last fiscal. Revenues from Indonesia and Africa during the quarter were Rs 321.64 crore and Rs 557.58 crore respectively, as against Rs 367.11 crore and Rs 515.20 crore. “At a consolidated level, our sales grew by 10 per cent, driven by 11 per cent sales growth in India and 9 per cent sales growth in our international business, in constant currency terms,” Godrej said.

The company said growth to some extent impacted by weakness in the bottom of pyramid formats like coils, which are more dependent on the wholesale channel. The International business delivers constant currency sales growth of 9 per cent driven by Africa, Latin America, and Europe, GCPL added. Meanwhile, the company’s board has declared an interim dividend Re 1 per share of face value of Re 1 each for the financial year 2017-18.

On the outlook, Godrej said, “We remain relentlessly focused on becoming more agile, increasing the pace of innovations, enhancing our go-to-market approach and investing in our key talent, to continue to outperform the market and deliver industry-leading returns.” The GCPL stock was trading 3.44 per cent up at Rs 966.50 on BSE.

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