Godrej Consumer Products gains after Q3 PAT rises 5%

Godrej Consumer Products rose 1.42% to Rs 746.15 after consolidated net profit rose 5.11% to Rs 445.20 crore on a 2.09% increase in net sales to Rs 2,755.08 crore in Q3 December 2019 over Q3 December 2018.

Consolidated profit before tax gained 3.12% to Rs 553.62 crore in Q3 December 2019 as against Rs 536.83 crore in Q3 December 2018. Tax expense fell 11.85% to Rs 110.47 crore as compared to Rs 125.33 crore in corresponding quarter, previous year.

Consolidated EBITDA grew 2% year-on-year (YoY). The Q3 earnings were declared during market hours today, 29 January 2020.

Speaking on the financial performance the company, Nisaba Godrej, the executive chairperson of Godrej Consumer Products, has said that, We delivered a steady performance in the third quarter of fiscal year 2020. Our India business delivered a robust volume growth of 7% alongside gaining market shares across major categories, amid further deterioration in staples consumption. We expect a gradual recovery in the coming quarters for the FMCG industry and also for our business. In our international businesses, Indonesia continued its strong performance with high single digit profitable sales growth driven by a consistent performance across categories and several go-to-market initiatives.

In GAUM (Godrej Africa, USA, Middle East), we saw a sales recovery with higher than mid single digit constant currency sales growth. The performance was driven by an improved performance in our South and West Africa cluster. We continue to drive the scale up of the wet hair care business and the relaunch of the Darling brand in the dry hair category, along with expansion in distribution across GAUM. Going ahead, we expect steady volume growth in India, supported by our continued focus on innovations and enhancements to our go-to-market model. We will continue to drive profitable sales growth in Indonesia, while focusing on profitability in Africa, and ensuring a meaningful turnaround in our Latin American business.

Godrej Consumer has five product segments namely Household Insecticides, Soaps, Hair Colours, Liquid Detergents and Air Fresheners. The company has manufacturing facilities at Malanpur in Madhya Pradesh, Baddi in Himachal Pradesh, Guwahati in Assam and Namchi in Sikkim.

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