We see rural turning back to 1.4-1.5 times urban growth this year: GCPL MD

For the 2018-19 financial year, we feel comfortable we will be able to drive profit growth ahead of sales growth and deliver margin expansion

Godrej Consumer’s (GCPL) profit for the April-June period rose the highest in five quarters (it was 80 per cent) on the back of a deferred tax gain. While comparable net sales growth was 11 per cent, net profit growth (excluding one-time gains) was still 36 per cent. Vivek Gambhir, MD, in an interview with Viveat Susan Pinto, explains what led to this quarterly performance and the way forward. Edited excerpts:

What has contributed to the 36 per cent net profit growth before exceptional items?

The key to growth has been gross margin expansion besides a good control on costs. For the quarter