Mumbai: Diversified Godrej Industries Ltd said consolidated net profit rose 39% in the December quarter supported by strong growth in its chemicals business.
Godrej Industries, which makes industrial chemicals, holds stakes in other group firms such as Godrej Consumer , Godrej Properties , Godrej Agrovet and Godrej Hersheys.
The firm on Monday posted a consolidated net profit of Rs610 million compared with Rs440 million a year ago. Total income rose over 20% to Rs10.76 billion.
“Our oleochemicals and agri businesses have shown strong growth in terms of sales and profitability and so have all our operating businesses,” chairman Adi Godrej told Reuters.
The standalone chemicals business posted a growth of 48% to Rs249.7 million. Net sales rose to Rs2.79 billion from Rs2.04 billion in the same period a year ago.
Its chemicals business draws 40% of its revenue from overseas and the remainder from the domestic market.
Oleochemicals are chemicals made from vegetable oils and have applications in various industries.
Godrej Industries also said it will spend Rs520 million to expand its fatty acid manufacturing capacity at Gujarat and plans to fund the expansion via a mix of internal accruals and debt.
Earlier in the fiscal, the firm had earmarked a capex of Rs2.2-2.5 billion to set up a new oleochemical manufacturing plant at Ambernath in Maharashtra, which will be operational by FY13.
The firm has also lined up significant investments in its oil palm plantation business and its agri businesses under Godrej Agrovet, Godrej said, but did not disclose details of the investment.
Godrej Industries also plans to expand its food retail network under the brand Godrej Nature’s Basket by adding 3 more stores in the coming months. It currently has 10 stores across Mumbai and Delhi.
“Currently we are not looking for PE funding and plan to fund the expansion via internal accruals,” Godrej said.
Godrej Properties saw its December quarter net profit dip 25% to Rs132.52 million , while its personal care arm Godrej Consumer saw its net rise 40% to Rs1.19 billion boosted by consolidation of recent acquisitions.
Shares of the firm ended 1.2% up at Rs185.8 in a Mumbai market that ended firm.