Home >Companies >Company Results >GCPL Q3 net profit up 5% to Rs445 crore

MUMBAI : Homegrown fast moving consumer goods (FMCG) company Godrej Consumer Products (GCPL) on Wednesday reported a 5.1% year-on-year increase in its October-December consolidated net profit to Rs445.20 crore on the back of steady growth in sales and volumes during the period.

The company had posted a net profit of Rs423.52 crore in the corresponding period last fiscal, GCPL said in a filing to the BSE. Profit was lower than Rs450.2 crore estimated by a Bloomberg poll of 18 analysts.

Revenue from operations stood at Rs2,778.05crore, up 2% year-on-year, GCPL said in the exchange filing.

The Godrej group firm said it has registered a 7% volume growth in its India business helped by “new product launches, effective marketing campaigns and consumer offers. The company expects a gradual recovery in the coming quarters for the FMCG industry and also for our business."

During the quarter under review, the company maintained EBITDA (Earnings before interest, tax, depreciation and amortisation) margin at 22.9 %.

"We delivered a steady performance in the third quarter of fiscal year 2020. Our India business delivered a robust volume growth of 7% alongside gaining market shares across major categories, amid further deterioration in staples consumption. We expect a gradual recovery in the coming quarters for the FMCG industry and also for our business," Nisaba Godrej, executive chairperson, GCPL.

She said the company saw a high single digit profitable sales growth in Indonesia driven by consistent performance across categories and several go-to-market initiatives. In GAUM (Godrej Africa, USA, Middle East), the company saw a sales recovery with higher than mid single digit constant currency sales growth. The growth was driven by an improved performance in the company’s South and West Africa cluster, she added.

“Going ahead, we expect steady volume growth in India, supported by our continued focus on innovations and enhancements to our go-to-market model. We will continue to drive profitable sales growth in Indonesia, while focusing on profitability in Africa, and ensuring a meaningful turnaround in our Latin American business," Godrej said.

Shares of GCPL ended nearly 1% higher at Rs742.10 per share, while the benchmark Sensex closed at 41,198.66, up 0.6% from previous close.

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