GCPL consolidated net falls 46% but sales rise1 min read . Updated: 05 Aug 2012, 08:30 PM IST
Sales rise 39%, exceeding street estimates driven by international acquisitions and domestic growth
Mumbai: Godrej Consumer Products Ltd, the maker of HIT insecticides and Cinthol soaps missed analyst expectations for its consolidated net profit, which dipped 45.56% to ₹ 130.46 crore for the first quarter ending 30 June. In the year-ago quarter, the company had an one-time exceptional gain of ₹ 175 crore on account of sale of the Kiwi brand.
Net profit for the Mumbai-headquartered company increased 31% after adjustments.
A Bloomberg poll of analysts had estimated the company to register net profit of ₹ 150.5 crore and sales of ₹ 1,318.5 crore.
Sales exceeded street estimates, growing 39% to ₹ 1,388.64 crore. The growth was driven by international acquisitions and growth in the domestic business.
“This is an exceptionally strong growth—the highest in the FMCG sector," said Adi Godrej, chairman, Godrej Consumer, who expects the company to maintain the “strong growth" through the fiscal year.
As the company invested behind brand building with new campaigns for the Good Knight and HIT brands, the domestic business sales grew 23%. Of this growth, approximately 10% was on account of price hikes, said Godrej.
Sales in the soaps category grew by more than 42%, 24% of which was volumes based. During the quarter, the company launched a new variant of Godrej No.1 soap.
Sales in the hair care segment was at 5%, on a base quarter which had launch of Godrej expert care and advanced range of powder hair colours.
Shares of Godrej Consumer Products rose 0.56% on Friday to close at ₹ 636.20 per share in Mumbai trading, while the bellweather 30-share Sensex lost 0.15% to close at 17,197.93 points.