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.