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Godrej Consumer Q2 cons PAT seen up 6.7% at Rs 140 cr
Godrej Consumer Products is expected to report a rise of 6.7% year-on-year in its consolidated profit after tax of Rs 140 crore for the quarter ended September FY12 as against Rs 131.1 crore in the corresponding quarter of last fiscal, according to CNBC-TV18 estimates.
Godrej Consumer Products is expected to report a rise of 6.7% year-on-year in its consolidated profit after tax of Rs 140 crore for the quarter ended September FY12 as against Rs 131.1 crore in the corresponding quarter of last fiscal, according to CNBC-TV18 estimates.
Sales are seen going up by 18.6% to Rs 1,130 crore from Rs 952.8 crore year-on-year.
Operating profit margin is expected to be at 16.9% in second quarter of FY12 as against 17.7% in same quarter the previous year.
Q2 Highlights
* Expect a 23-25% growth in the domestic business
* Domestic business led by continued traction in household insecticide biz and new launches
* Volume growth is likely to remain strong as demonstrated in Q1 (9% in soaps and 10% hair color)
* Topline growth also reflects revenues from the Darling group acquisition (1 month of consolidation)
Drags
* As seen in Q1, competitive intensity has meant higher advertising and promotion (A&P) costs - margins were down 380 bps last quarter
* So topline growth for GCPL has come at a cost
* Higher leverage for acquisitions - Interest costs were up 80% in Q1
* Company has USD 350 million of overseas debt - Rupee depreciation will impact - But will take it on the B/S
* Company took a 4% price hike in soaps in Q1 and palm oil prices are down 1.6%; will support margins
