FMCG major GCPL's Q2 net profit surges 22 per cent to Rs 287 crore

FMCG major Godrej Consumer Products Ltd (GCPL) today reported a 22.44 per cent increase in its consolidated net profit at Rs 287.16 crore for the second quarter ended on September 2015 on back of a healthy volume growth.

The company had reported a net profit of Rs 234.53 crore in the same period last year, GCPL said in a BSE filing.

GCPL's total income from operations on consolidated basis was also up 8.97 per cent at Rs 2,244.94 crore during the quarter under review as against Rs 2,060.12 crore of July-September of the last fiscal.

Godrej Group Chairman Adi Godrej said: "In Q2 of FY16, we continued our double-digit growth in sales and profits. Our India business branded net sales grew by 10 per cent, driven by a healthy volume growth of 9 per cent. This competitive performance was delivered despite the softness in rural demand and a deficient monsoon."

GCPL's international business churned out a strong sales growth of 15 per cent and EBITDA growth of 35 per cent.

"This was aided by lower commodity costs, stringent cost management and effective leveraging of our brand platforms," he said.

GCPL's consolidated net profit for the first half of 2015-16 was up 28.68 percent to Rs 486.39 as against Rs 377.98 crore a year ago.

Net sales during the first half of the current fiscal were Rs 4,342.60 crore, up 9.97 per cent, from Rs 3,948.63 crore a year ago.

"We have sustained our strong and competitive performance in the first half of fiscal year 2016 with sales growth of 12 per cent and EBITDA growth of 26 per cent, in organic constant currency terms. We have grown ahead of the market and gained share in our core categories, aided by our continued focus on innovations, competitive marketing investments and strong on-ground execution," said Godrej.

On outlook, he said medium and long-term growth prospects in India and group's other emerging markets remain robust.

"We believe that there is still a lot of headroom for growth across these markets, given the low penetration and consumption rates in our core categories. I am confident that with our clear strategic focus, differentiated product portfolio, superior execution and top-notch team, we will continue to deliver industry-leading results in future," said Godrej.

Meanwhile, in a separate filing, GCPL informed that the board of the company in its meeting held today has declared a second interim dividend of 100 per cent of Re 1 per share on the face value of Re 1 each for 2015-16.