GCPL Q3 results: Net profit rises by 6.3% to Rs 581 cr, revenue up 1.54%

FMCG major Godrej Consumer Products Ltd on Wednesday reported a 6.35 per cent increase in consolidated net profit to Rs 581.06 crore in the December quarter, aided by volume growth in the domestic market.

It had posted a net profit of Rs 546.34 crore in the year-ago period, said Godrej Consumer Products Ltd (GCPL) in a BSE filing.

Revenue from the sale of products of the Godrej group's FMCG arm was up 1.54 per cent to Rs 3,622.80 crore in the third quarter of the ongoing fiscal. It was Rs 3,567.72 crore in the corresponding period of the last fiscal.

GCPL's total expenses in the December quarter was down 1 per cent at Rs 2,939.39 crore.

Total revenue of GCPL during the quarter was Rs 3,729.72 crore, up 2.4 per cent.

GCPL Managing Director and CEO Sudhir Sitapati said, "We continued to deliver steady performance in the third quarter despite challenging market conditions."

"Our consolidated volumes grew 8 per cent, led by the India business growing volumes at 12 per cent and Indonesia growing volumes at 9 per cent. Our consolidated revenue growth was significantly impacted by the devaluation of the Naira and the Argentine Peso with sales growing at 2 per cent in INR terms and 19 per cent in constant currency terms," he said.

GCPL's revenue from the domestic market was up 9.66 per cent to Rs 2,204.12 crore in the December quarter.

This was led by a volume growth of 12 per cent, said GCPL, which has key brands as Godrej No 1, Hit, and Good Knight.

Its home care grew 5 per cent and personal care 2 per cent during the quarter.

Its two brands Park Avenue and KamaSutra, which it acquired from Raymond and entered into deodorant and sexual wellness category "continue their healthy sales run-rate delivered and clocked sales of Rs 139 crore".

"The integration has been completed and synergies have started to flow from Q3," it said, adding that it is "on track to achieve its full-year ambition".

Revenue from GCPL's second-biggest market, Indonesia, was up 7.66 per cent to Rs 466.53 crore. It was at Rs 433.32 crore in the year-ago period.

In Indonesia, GCPL had a "strong volume growth at 9 per cent" with a sales growth of 8 per cent in INR terms.

GCPL's revenue from Africa (including Strength of Nature) market was down 8.32 per cent to Rs 923.25 crore in the December quarter.

"Our Africa, US, and Middle East businesses delivered a sales growth of 14 per cent in constant currency terms while performance in INR terms was impacted by the devaluation of Naira (Nigerian currency)," it said.

Revenue from other markets was also down 45 per cent to Rs 99.31 crore, it said.

Shares of Godrej Consumer Products Ltd settled at Rs 1,164.15 on the BSE on Wednesday, down 0.43 per cent from the previous close.