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Overseas buys boost GCPL’s performance

Overseas buys boost GCPL’s performance

Mumbai: Personal care products maker Godrej Consumer Products Ltd (GCPL) beat analysts’ forecast to post healthy consolidated profits for the three months to 31 March over the previous year, thanks to improving performance in smaller towns and cities and overseas expansion.

GCPL said on Monday it earned Rs91.76 crore in consolidated net profit in the March quarter, a year-on-year growth of 54%. Revenue rose 48% to Rs509.19 crore in the same period.

The company—which makes Cinthol and Godrej No. 1 soaps—also posted a consolidated net profit of Rs339.59 crore for the 2009-10 fiscal, an increase of 97% over 2008-09. Annual income increased by 47% to Rs2,041.2 crore.

Also Read | GCPL’s foreign buys to drive earnings

“We’ve significantly enhanced our domestic presence, especially in tier-II and tier-III cities," chairman Adi Godrej said in a statement.

“There has been no price hike in our haircare or soap portfolio last year," chief executive Dalip Sehgal said.

During the quarter, the company acquired personal care products firm Tura in Nigeria. It is also in talks with US-based Sara Lee Corp. to acquire its 51% stake in their joint venture Godrej Sara Lee Ltd, after buying 49% in July.

“Prima facie, they are a decent set of numbers," said Anand Shah, sector analyst with Angel Broking Ltd. “However, there are concerns as this growth is being driven by Sara Lee and international business. The revenues of stand-alone domestic business has grown only 2.5%."

GCPL’s shares closed at Rs297.70, down by Rs8.15, or 2.66%, from its previous day’s close on the Bombay Stock Exchange. The Sensex closed at 17,745.28, up by 51.08 points, or 0.29%.


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