Godrej Consumer Products Q2 net up 59.61% to Rs 577.73 cr

Homegrown FMCG major Godrej Consumer Products (GCPL) Friday reported a 59.61 per cent year-on-year jump in consolidated net profit at Rs 577.73 crore in the second quarter ended September.

The company had posted a profit of Rs 361.95 crore in the corresponding period last fiscal, it said in a statement.

Consolidated total revenue from operations increased to Rs 2,685.18 crore in the quarter under review, compared with Rs 2,525.54 crore in the year-ago period.

The company's India revenue increased to Rs 1,507.61 crore, from Rs 1,363.78 crore last year.

"We had a mixed performance in the second quarter of fiscal year 2019. Our India business delivered double-digit sales growth and strong profit growth, while stepping up our investments in marketing," GCPL executive chairperson Nisaba Godrej said.

"In our international business, Indonesia continued its strong recovery, while Africa and Latin America recorded relatively weaker performances due to adverse macroeconomic conditions," she added.

GCPL said its household insecticides sales declined by 2 per cent due to uneven distribution and deficient rainfall impacting demand, especially in south and east India, which account for around 60 per cent of its sales.

While soaps saw a 11 per cent rise in sales volume, hair colours registered a 21 per cent increase.

"Overall, we remain relentlessly focused on becoming more agile, increasing the pace of innovations, enhancing our go-to-market approach and investing in our key talent, to continue to outperform the market and deliver industry-leading returns," said Godrej.

Meanwhile, the company's board Friday declared an interim dividend of Rs 4 per share.

The company's scrip was trading 1.21 per cent higher at Rs 714.80 apiece on the BSE at 1524 hours, against 1.61 per cent increase in the benchmark.