GCPL September quarter net profit increases 10.7% to Rs 458 crore

FMCG major Godrej Consumer Products Ltd (GCPL) on Thursday reported a 10.66 per cent increase in its consolidated net profit at Rs 458.02 crore in the second quarter ended September.

The company had posted a net profit of Rs 413.88 crore in the same quarter a year ago, GCPL said in a BSE filing.

Its net sales were at Rs 2,893.86 crore, up 10.95 per cent during the quarter under review as against Rs 2,608.15 crore in the corresponding period of the last fiscal.

Commenting on the results GCPL Chairperson and Managing Director Nisaba Godrej said: We delivered a strong performance this quarter with double-digit, profitable sales growth. Consolidated sales grew 11 per cent and EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) grew by 19 per cent. All our geographic clusters also recorded positive sales growth.

Total expenses were at Rs 2,324.55 crore, up 7.66 per cent in the second quarter as against Rs 2,159.14 crore in the year-ago period.

The company's India revenue was up 10.38 per cent to Rs 1,679.19 crore in the quarter under review as against Rs 1,521.28 crore in the same quarter a year ago.

GCPL's volumes grew by 5 per cent and net profit without exceptions and one-off grew by 16 per cent to Rs 351 crore in the domestic market, it said.

Revenue from the Indonesian market is up 4.63 per cent to Rs 445.97 crore as compared with Rs 426.21 crore in the year-ago period.

While GCPL's revenue from Africa (including Strength of Nature) market is up 10.28 per cent at Rs 652 crore as against Rs 591.18 crore in the year-ago quarter.

Our Africa, USA and Middle East business showed robust recovery, growing at 10 per cent in both constant currency and INR terms. Our Indonesian business delivered a soft performance, growing at 3 per cent in constant currency and 5 per cent in INR terms, she said.

Revenue from other markets was also up 41.96 per cent to Rs 18,132 crore in second quarter of financial year 2020-21 as against Rs 127.72 crore.

On the outlook, Nisaba Godrej said GCPL will continue to focus its efforts in segments where the demand is, as in household insecticides, hygiene, and value for money.

We are ramping up innovation and have launched several new products, strongly price-enabled, across geographies. Across channels too, we are making a shift; doubling down on digitisation and platforms like e-commerce and chemists, she added.

Shares of GCPL settled at Rs 669.95 apiece on BSE, down 0.89 per cent from the previous close.