According to the company, its India business sales declined 18 percent year-on-year, led by a 15 percent year-on-year decline in volume.
The company had posted a net profit of Rs 935.24 crore in the January-March quarter a year ago, GCPL said in a BSE filing.
The government on Wednesday issued new guidelines for the second phase of lockdown and allowed functioning of industrial units located in rural areas from April 20 although all kinds of public transport continue to be suspended till May 3.
GCPL has paid $20.89 million cash consideration - $13.80 million to Godrej West Africa Holdings and $7 million for Darling Trading Company - for acquisition of five percent stake in each firms
On the recovery in volumes, Godrej said, “It is difficult to tell, it depends on the general economy.”
Net Sales are expected to increase by 6.1 percent Y-o-Y (up 4.9 percent Q-o-Q) to Rs. 2,790.5 crore, according to Kotak.
Net Sales are expected to increase by 9.9 percent Y-o-Y (up 12.1 percent Q-o-Q) to Rs. 2,450 crore, according to HDFC Securities.
While the businesses are on the mend, we expect pricing and innovation contribution to be tested in times to come
Net Sales are expected to increase by 12.5 percent Y-o-Y (down 2 percent Q-o-Q) to Rs. 2,440 crore, according to HDFC.
GCPL has presence in over 90 countries and is building a presence in emerging markets of Asia, Africa, Latin America across categories -- home care, personal wash and hair care.
Net Sales are expected to increase by 8.5 percent Y-o-Y (up 2.7 percent Q-o-Q) to Rs. 2,701.1 crore, according to KR Choksey.
"Over the last two years, we have been working on a completely differentiated product portfolio for professional segment designed for Indian hair. We are entering this market and we have very ambitious plans for this market," GCPL Business Head - India and SAARC Sunil Kataria told PTI.
"Both the transferor companies are wholly-owned subsidiaries of GCPL. As per the scheme GCPML and GCPUSHL will be amalgamated into GCPL," the company said in a BSE filing.
"This acquisition is a further step to accelerate GCPL's global 3 by 3 strategy and scale up its presence in Africa by being at the forefront of serving the hair care needs of women of African descent," the company said in a statement.
Adi Godrej, Chairman, Godrej group says that going forward the entire sales growth is likely to come from volumes and that weakness in commodity prices will help boost margin.
The brokerage expects GCPL to maintain margin-led growth momentum in Q2FY16 on stable growth in domestic business (mainly led by household insecticides and hair color), and strong constant currency (CC) growth in Latin America/Africa, but weakness in Indonesia.
"Even if there are no other reforms, if the next government implements the GST, I firmly believe it will drive our growth to double digits," Adi Godrej told reporters in an interaction.
Homegrown FMCG player Godrej Consumer Products Ltd (GCPL) on Wednesday reported 39 percent rise in net profit at Rs 199.23 crore for April-June quarter of this fiscal, boosted by cheaper raw materials and a massive spurt in rural sales following product innovations.
Godrej Consumer Products Ltd on Wednesday said it will acquire the balance 40 percent stake in Chilean hair colour and cosmetics company Cosmetica Nacional to gain full control of the company.
Brokerage house Firstcall Research is bullish on Godrej Consumer Products (GCPL) and has recommended buy rating on the stock with a target price of Rs 1220 in its research report dated May 11, 2015.
GCPL had said its Africa business currently has annualised revenues of USD 200 million. It acquired 51 percent stake in Darling South Africa in September 2011 and in Darling Mozambique in October 2011.
FMCG major Godrej Consumer Products today said it has fully acquired South Africa's hair extensions firm Frika Hair (Pty) for an undisclosed sum in order to consolidate its position in the South African market.
Motilal Oswal has maintained a 'Neutral' rating on Godrej Consumer Products (GCPL) with a target price of Rs 1100, in its research report dated December 22, 2014.
Angel Broking has maintained a neutral rating on Godrej Consumer Products (GCPL), in its May 08, 2014 research report. The research firm expects GCPL‘s consolidated top-line and bottom-line to grow at a CAGR of 16.8% and 22.6% over FY2014-16E.
GCPL is confident of sustained growth momentum in the hair colour portfolio despite heightened competition.