Godrej Consumer Products net profit falls 25% in second quarter

Godrej Consumer Products saw its net profit fall 25 per cent to Rs 358.9 crore in the July-September quarter (Q2FY23) as its EBIDTA declined due to high cost inventory, upfront marketing investments and a weak performance in Indonesia, Latin America and SAARC. 

Its net sales in the quarter was up 7.2 per cent to Rs 3,391.92 crore which was led by price hikes. 

“We continue to believe that with the relatively non-discretionary, mass pricing of our portfolio and good performance on market shares, volume growth will return in the short term,” Sudhir Sitapati, managing director and chief executive officer said in its release.

He also said the company continues to have a healthy balance sheet and its net debt to equity ratio continues to drop. “We are on a journey to reduce inventory and wasted cost and are deploying this to drive profitable and sustainable volume growth across our portfolio through category development,” Sitapati added.