Godrej Consumer Products Q2 PAT up 5% YoY to Rs 479 crore

Godrej Consumer Products (GCPL) reported 4.6% rise in consolidated net profit to Rs 478.89 crore on a 8.5% increase in revenue from operations to Rs 3,163.65 crore in Q2 FY22 over Q2 FY21.

On the segmental front, India revenue was Rs 1,838.14 crore (up 9.5% YoY), Indonesia revenue was Rs 444.93 crore (down 0.2% YoY), Africa revenue was Rs 748.54 crore (up 14.8% YoY) and revenue from Others was Rs 173.72 crore (down 4.2% YoY) in the second quarter.

With respect to India business, Godrej Consumer said that the Home Care category saw a steady growth of 7%. The company delivered single-digit growth in Household Insecticides. Growth was mixed driven by seasonality during the quarter. Air Fresheners and Fabric care continued to see gradual recovery and grew in double-digits.

The Personal Care category grew by 12%. Personal Wash & Hygiene maintained its growth momentum, delivering double-digit sales growth (2-year CAGR was also in double-digits). The company continued to gain market share, led by micromarketing initiatives to fuel growth. It is currently navigating high input costs through calibrated price increases.

GCPL's Indonesia business delivered a soft performance with a sales decline of 2% in constant currency terms. The economy is witnessing gradual recovery. The company continues to see strong traction in Hygiene. EBITDA margins expanded by 60 bps year-on-year.

GCPL's Africa, USA and Middle East cluster delivered a broad based double-digit sales growth of 16% in constant currency terms (2-year CAGR 13%). EBITDA margins increased by 50 bps yearon-year, driven by scale leverage and cost-saving initiatives.

Total expenses rose 11% YoY to Rs 2,579.45 crore during the quarter.

Profit before tax in Q2 FY22 stood at Rs 605.61 crore, up by 0.2% from Rs 604.32 crore in Q2 FY22 over Q2 FY21.

Nisaba Godrej, Executive Chairperson, GCPL, said: We have delivered steady sales growth. Consolidated sales grew by 9% and EBITDA declined by 1%. We continued our growth momentum and delivered another quarter of double-digit 2-year CAGR of 10%.

Going forward, we will continue to focus our efforts where the demand is in Home Care and Personal Care - in Household Insecticides, Personal Wash & Hygiene, and Hair Care. We remain focused on expanding our total addressable market. We have a robust pipeline of consumer-centric innovations and are building out full portfolios across price points. To support this, we are strengthening our supply chain operations and ramping up new capabilities and channels in digital, e-commerce and chemists.

I am very excited that Sudhir Sitapati has taken over as Managing Director and Chief Executive Officer of GCPL and I look forward to the leadership and growth he will bring along with our wonderful GCPL team."

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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