Godrej Consumer Products drops after Q1 earnings

Godrej Consumer Products lost 1.03% to Rs 847.95 at 10:57 IST on BSE after consolidated net profit without exception items and one time tax reversal rose 7% to Rs 130 crore on 24% growth in net sales to Rs 1720 crore in Q1 June 2013 over Q1 June 2012

The Q1 result was announced on Saturday, 3 August 2013.

Meanwhile, the S&P BSE Sensex was up 98.04 points or 0.51% at 19,262.06.

On BSE, 5,104 shares were traded in the counter as against average daily volume of 52,753 shares in the past one quarter.

The stock hit a high of Rs 860 and a low of Rs 835 so far during the day. The stock had hit a 52-week low of Rs 600.30 on 7 August 2012. The stock had hit a record high of Rs 977.40 on 18 July 2013.

The stock had outperformed the market over the past one month till 2 August 2013, rising 3.73% compared with the Sensex's 1.54% fall. The scrip had also outperformed the market in past one quarter, gaining 2.01% as against Sensex's 2.9% slide.

The large-cap company has equity capital of Rs 34.03 crore. Face value per share is Re 1.

Godrej Consumer Products (GCPL) said that Q1 June 2013 had an exceptional gain of Rs 2.2 crore arising from profit on sale of Simba brand (Indonesia food business). Meanwhile, Q1 June 2012 had a positive one time tax reversal impact of Rs 16.5 crore (Rs 8 crore after minority interest).

GCPL's consolidated revenue in constant currency terms grew 27% year on year (YoY) in Q1 June 2013. Organic business in constant currency terms rose 19%. India business grew 19% with strong growth across core categories. International organic business at constant currency grew 19%.

GCPL's consolidated earnings before interest, taxation, depreciation and amortization (EBITDA) rose 11% to Rs 225 crore in Q1 June 2013 over Q1 June 2012. EBITDA margin stood at 13.1%. Advertisement and Publicity expenses grew 54% during the quarter.

GCPL said it has adopted the notification issued by the Ministry of Corporate Affairs on 29 December 2011, on amortization of foreign exchange (forex) impacts. The total forex loss for the quarter, including mark to market impact at consolidated level aggregates to Rs 15.4 crore. GCPL said it has a forex committee that monitors all the exposures and takes calls on hedging the exposures.

GCPL is a major player in the Indian FMCG market, with leading household and personal care products. It is one of the largest marketers of toilet soaps in the country and is also a leader in hair colours and household insecticides. It has a strong emerging presence in markets outside India.

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