Godrej Consumer gallops after Q4 PAT surges 59% YoY to Rs 366 cr

Godrej Consumer Products rose 19.38% to Rs 854.70 after the company's consolidated net profit surged 59.1% to Rs 365.84 crore on 26.9% jump in net sales to Rs 2,705.69 crore in Q4 FY21 over Q4 FY20.

Consolidated profit before tax soared 25.8% to Rs 424.41 crore in Q4 March 2021 as against Rs 337.39 crore in Q4 March 2020. The consolidated EBITDA galloped 21% Y-o-Y in Q4 March 2021 over Q4 March 2020. Consolidated EBITDA margins stood at 21.2%, a decrease of 110 bps year-on-year, driven by drop in India and Latin America & SAARC margins.

The India sales grew 35% to Rs 1,466 crore in Q4 FY2021 over Q4 FY2020 while the volume jumped 29% during the period under review.

Overseas, Indonesia sales growth recorded 5% rise (in INR) and 4% in constant currency terms, Y-o-Y (year-on-year). Africa, USA and Middle East sales registered 30% growth (in INR) and 36% in constant currency terms, Y-o-Y. Latin America & SAARC sales jumped 30% (in INR) and 54% in constant currency terms, Y-o-Y.

Among its segments, Household Insecticides grew 34% Y-o-Y in Q4 FY2021 over Q4 FY2020. Soaps delivered a third consecutive quarter of double-digit sales growth of 41% Y-o-Y in Q4 FY21 over Q4 FY20 while the firm continued to gain market share in the space. Hair Colours recorded a steady sales growth of 25% Y-o-Y in Q4 March 2021 over Q4 March 2020, driven by an uptick in overall category growth.

Commenting on the Q4 FY2021 performance, Nisaba Godrej, chairperson and managing director (MD) of Godrej Consumer Products, said: "We delivered a third consecutive quarter of double-digit sales growth. Going forward, we will continue to focus our efforts where the demand is - in Household Insecticides, Hygiene, and Value for Money. We are investing behind consumer-centric innovations and serving our consumers across all price points. To enable this, we are strengthening our supply chain operations and distribution networks. We are also building up our digitisation capabilities and channels like e-commerce and chemists."

"We remain confident of leveraging growth opportunities to drive sustainable, profitable sales growth across our portfolio in FY 2022. We will continue to carefully navigate the challenges of the second wave of COVID-19 in India by ensuring seamless supply chain deliveries, and closely tracking shifts in consumer behaviour to respond to."

Meanwhile, the company's board has appointed Sudhir Sitapati as the managing director (MD) & chief executive officer (CEO) of Godrej Consumer Products for a period of five years with effect from 18 October 2021, subject to the approval of the shareholders in the ensuing Annual General Meeting (AGM). Accordingly, with effect from that date, Nisaba Godrej, who is currently the chairperson & managing director (MD), will serve as executive chairperson.

Godrej Consumer Products is an Indian consumer goods company. The company's products include soap, hair colourants, toiletries and liquid detergents.

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