Godrej Consumer Q1 PAT slips 3% to Rs 395 cr

On a consolidated basis, Godrej Consumer Products net profit fell 3.12% to Rs 394.88 crore on 1% decline in total revenue from operations to Rs 2,327.34 crore in Q1 June 2020 over Q1 June 2019.

Consolidated profit before tax (PBT) jumped 9.21% to Rs 409.60 crore in Q1 June 2020 as against Rs 375.03 crore in Q1 June 2019. Current tax expense for the quarter rose 10.29% at Rs 94.07 crore as against Rs 85.29 crore in Q1 June 2019.

During the quarter, Godrej Consumer Products incurred an exceptional item of Rs 33.15 crore being gain on account of change in earn out liability of a subsidiary offset by impairment of investment in associate of Rs 15.38 crore and restructuring costs worth Rs 4.59 crore the consolidated financial statements. The result was declared during market hours today, 4 August 2020.

Consolidated EBITDA for Q1 FY21 grew 3% year-on-year (Y-o-Y) while consolidated EBIDTA margin expanded to 20.5% during the quarter. In Q1 FY21, India business sales grew by 5% year-on-year, led by 3% year-on-year growth in volume. Indonesia sales grew by 5% year-on-year, on a constant currency basis. Africa, USA and Middle East sales declined by 23% year-on-year, on a constant currency basis. Latin America & SAARC sales grew by 23% year-on-year, on a constant currency basis.

Commenting on the business performance of Q1 FY 2021, Nisaba Godrej, the chairperson and managing director (MD) of Godrej Consumer Products (GCPL), said, "This quarter was tough due to the challenges we faced with lockdowns across geographies and the ensuing supply side issues. We also scaled up alternate channels, reduced our new product development cycle time from months to weeks (we launched 45 products this quarter, our most ever), and learnt how do things better and faster because of the constraints placed on us. From a category perspective, Household Insecticides, Hygiene and Value for Money (which contributed to 85% of our overall sales) grew by 9%. Household Insecticides grew by 27% and Hygiene grew by 15%. Value For Money declined in the initial part of the quarter but grew in June."

"From a country perspective, both India and Indonesia (which contributed to over 76% of overall sales) showed resilient growth at 5% each. Our Africa, USA and Middle East business had a degrowth of 23% in constant currency terms. The silver lining was that May and June were much stronger than April, and big markets like South Africa and Nigeria are gradually picking up."

"Going forward, we are focusing our efforts on where the demand is - in Household Insecticides, Hygiene, and Value for Money. We have several new launches, strongly price- enabled, across geographies. It is not just our categories; our channels too are seeing a shift, and we will be doubling down on digitisation and platforms like e-commerce and chemists. We are also ramping up our supply chain operations and distribution," Godrej added.

Shares of Godrej Consumer Products declined 2.12% to end at Rs 683.50 on BSE. 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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