Mumbai: Godrej Consumer Products Ltd (GCPL) said fiscal second-quarter profit rose 44% on higher sales of household insecticides.
Net profit rose to Rs318.12 crore in the September quarter from Rs221.43 crore a year earlier. Total income from operations rose 11% to Rs2,439.35 crore from Rs2,197.28 crore a year ago.
A Bloomberg poll of 20 analysts had estimated profit at Rs333.10 crore on net sales of Rs2,462.60 crore for the September quarter.
“We have delivered a relatively strong operating performance in the second quarter of fiscal year 2017, with a consolidated constant currency sales growth of 15% and constant currency Ebitda (earnings before interest, tax, depreciation and amortization) growth of 17%. We continue to deliver Ebitda growth ahead of sales growth, despite a strong base from the previous year,” GCPL chairman Adi Godrej said in a statement.
Profit of GCPL’s India business rose 15% to Rs212 crore. Net sales in India grew 7% from a year earlier to Rs1,305 crore, led by a recovery in the sales of household insecticides.
In Indonesia, constant currency sales declined by 2% because of a macroeconomic slowdown and adverse weather impact on the sales of household insecticides. However, constant currency sales growth (ex-household insecticides) was strong at 13%, it said.
Sales also declined 2% in constant currency terms in the European business because of the overall weakness in demand post-Brexit. However, operating margin increased by 80 basis points year-on-year due to stringent control over costs and relatively lower contractual advertising and promotion spends.
The Africa and Latin America businesses reported robust growth. The Africa business grew 75% led by sales of Rs185 crore from its Strength of Nature and Canon Chemicals acquisitions. Latin America business increased by 20%.
Shares of GCPL declined 0.23% to Rs1,521.40 on BSE, while the Sensex gained 0.68% to 27,458.99 points.