Godrej Consumer Products reported a consolidated net profit of Rs 318.82 crore for the April-June quarter of FY24 on August 7, registering a decline of 7.6 percent from Rs 345.12 crore in the same quarter of the previous financial year.
Total revenue of the company came at Rs 3,448.91crore, rising 10.36 percent from Rs 3,124.97 crore in the year-ago quarter, the company said in a regulatory filing.
Revenue and net profit missed estimates. According to a CNBC poll of brokerages, Godrej Consumer Products net profit was expected at Rs 428 crore and revenue at Rs 3600 crore.
Earnings before interest, tax, depreciation and amortization (EBIDTA) were at Rs 642.8 crore, growing by 23.4 percent and the EBIDTA margin was at 18.6 percent, up 240 basis points from the year-ago quarter. One basis point is one-hundredth of percentage point.
"This performance was broad based with Home Care delivering double-digit volume growth and Personal Care in mid-single digits. Our value growth was lower than volume growth as we passed on the benefits of lower input costs to our consumers." said Sudhir Sitapati, Managing Director
and CEO.
The company's India sales grew by 9 percent to Rs 1,971 crore and volume grew by 12 percent. The home care grew by 14 percent led by performance in household insecticides was robust with double digit volume and value growth. Air Fresheners has also been consistently delivering strong double-digit growth, the company said in a press release.
The company's personal care segment grew by 2 percent. Personal Wash maintained its growth momentum, delivering high-single-digit volume growth. Value grew in low-single digits as the company passed on the benefit of lower input cost to consumers. Hair colour grew in mid-single digits, off a high base with 2-year CAGR in teens.
Indonesia sales grew by 20 percent in INR terms and 15 percent in constant currency terms, year-on-year. The company's Africa, USA and Middle East sales grew by 9 percent in INR terms and 16 percent in constant currency terms, year-on-year. Latin America and SAARC sales grew by 18 percent in INR terms and grew by 79 percent in constant currency terms, year-on-year.
The company has also approved a capital expenditure of ₹ 900 crores for setting up a new manufacturing site at Tamil Nadu and Madya Pradesh, the company said in a regulatory filing. The new investment will cater to the growing demand of the customers and to consolidate the manufacturing footprint. The Company plans to add approximately 20 percent capacity in the home and personal care categories with this additional investment.
On August 7, Godrej Consumer Products closed 1.62 percent higher at Rs 1034 on NSE.
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