GCPL Q3 net profit up 5% to 527.60 cr; net sales up 8% to Rs 3,302.58 cr

FMCG major Godrej Consumer Products Ltd (GCPL) on Tuesday reported a 4.93 per cent increase in consolidated net profit at Rs 527.60 crore for the third quarter ended December 2021.

The Godrej group company had posted a net profit of Rs 502.80 crore in the October-December quarter of 2020.

Its total revenue from operations was up 8.08 per cent at Rs 3,302.58 crore during the quarter under review, as against Rs 3,055.42 crore in the corresponding period last fiscal, GCPL said in a regulatory filing.

GCPL's total expenses were at Rs 2,714.32 crore, up 11.46 per cent in Q3/FY 2021-22, as against Rs 2,435.11 crore in the corresponding quarter.

"We delivered a mixed performance in Q3FY2022. While overall sales grew by 8 per cent, and we remain on track to achieve double-digit sales growth for the full year, it was driven entirely by price-led growth," GCPL Managing Director and CEO Sudhir Sitapati said.

However, without exceptional items and one-offs, GCPL's net profit declined by 1 per cent year-on-year "While our overall EBITDA de-grew by 2 per cent and PAT declined by 1 per cent, the quality of profits has improved. We have witnessed a sequential expansion of consolidated gross margins of 70 bps and higher Advertisement & Publicity spends of 90 bps," he added.

In the exceptional item, GCPL had a reversal of Rs 15.38 crore towards impairment of investment in an associate company.

GCPL's India revenue was up 7.23 per cent to Rs 1,817.43 crore in the October-December quarter, as against Rs 1,694.75 crore a year ago.

Volume growth of GCPL's India business was 'flat', the company said in a post earnings statement.

Revenue from the Indonesian market was marginally down at Rs 447.19 crore, as compared to Rs 447.28 crore in the year-ago period.

GCPL's revenue from Africa (including Strength of Nature) market was up 13.52 per cent at Rs 884.20 crore, as against Rs 778.83 crore a year ago.

Revenue from other markets was up 11.22 per cent to Rs 200.23 crore in Q3/FY 2021-22, as against Rs 180.02 crore.

"India grew at 8 per cent. Our Africa, USA and Middle East business continued its robust growth trajectory, growing at 13 per cent in INR and 12 per cent in constant currency terms. Our Indonesian business saw flat growth in INR, and declined by 2 per cent in constant currency terms," said Sitapati.

Over the outlook, Sitapati added: "We believe that with the relatively non-discretionary, mass pricing of our portfolio and very good performance on market shares, volume growth will return in the medium-term." Shares of Godrej Consumer Products Ltd on Tuesday settled at Rs 878.95 on BSE, down 1.17 per cent from the previous close.