Shares of GCPL closed 2.7% higher at  ₹741.60 on the BSE (Mint file)
Shares of GCPL closed 2.7% higher at 741.60 on the BSE (Mint file)

GCPL Q2 net profit down 28% at 413.88 crore

  • Minus exceptional and one-off items, net profit grew 11% year-on-year to 384 crore in the reporting quarter
  • During the September quarter, total income stood at 2,656.76 crore, falling a marginal 1% from the year-ago period

Mumbai: Fast moving consumer goods company Godrej Consumer Products (GCPL) on Wednesday reported a 28.3% year-on-year decline in its consolidated net profit to 413.88 crore for the quarter ended September. The Mumbai-based firm, which makes household insecticides and soaps, among others, had posted a one-time gain of 259.72 crore in the second quarter last financial year due to the divestment of its UK business during the period.

Minus exceptional and one-off items, net profit grew 11% year-on-year to 384 crore in the reporting quarter, the company said in a filing to the BSE.

Shares of GCPL closed 2.7% higher at 741.60 on the BSE, while the benchmark Sensex closed 0.5% higher at 40,469.78.

During the September quarter, the company's total income stood at 2,656.76 crore, falling a marginal 1% from the year-ago period. However, the Godrej-group firm saw a strong volume growth of 7% "led by new product launches effective marketing campaigns and consumer offers."

“We delivered a steady performance in the second quarter of fiscal year 2020. Our India business delivered a robust volume growth of 7%, broad based across categories, amidst a general slowdown in staples consumption. We expect a gradual recovery in the coming quarters for the FMCG industry and also for our business," said Nisaba Godrej, executive chairperson GCPL.

The company’s India sales grew 1% year-on-year to 1,521 crore during the reporting quarter. International business grew 7% year-on-year in constant currency terms, the company said.

"In our international businesses, Indonesia continued its strong performance with double digit profitable sales growth driven by a consistent performance across categories and several go- to-market initiatives," Godrej said.


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