 "Godrej Consumer")
India's Godrej Consumer Products reported a nearly 20% rise in fourth-quarter profit before a one-time charge on Monday, benefiting from higher demand for its home and personal care products.
WHY IT'S IMPORTANT
Rising household incomes and evolving lifestyles have fuelled the growth of consumer goods makers like Godrej Consumer Products, at a time when other companies have reported mixed results.
Consumers are spending more on a variety of the company's offerings, from Cinthol soap to Godrej Expert hair colour.
However, an extended winter in north and east India led to reduced purchases of household insecticide products, the company said last month, while flagging a drop in revenue due to the devaluation of the local currency in Nigeria, where the company has operations.
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Rival Dabur India reported a larger-than-expected fourth-quarter profit rise due to stable domestic demand and lower costs, while Hindustan Unilever missed quarterly earnings estimates but said a recovery in rural demand is underway.
BY THE NUMBERS
Godrej Consumer Products' profit before exceptional items rose to Rs 691 crore ($82.8 million) from Rs 578 crore a year ago.
However, it posted a net loss of Rs 1,893 crore hurt by a one-time charge of Rs 2,376 crore on account of restructuring costs. Last year it had reported a net profit of Rs 452 crore.
Its total revenue from operations rose about 6% to Rs 3,386 crore in the fourth quarter, beating analysts' estimate of Rs 3,348 crore, as per LSEG data.
Cost of raw materials declined 7.4%, aiding margins.
The company's India business volume grew 15% during the quarter. It announced a dividend of 10 rupees per share.
