Godrej Consumer consolidated net up 25% at Rs 159 cr

Godrej Consumer Products  today reported 25 per cent rise in consolidated net profit at Rs 159 crore in the September quarter, driven by robust 35 per cent jump in sales at Rs 1,595 crore.

Consolidated EBITDA (earnings before interest, taxation, depreciation, and amortization) rose 18 per cent to Rs 249 crore during the reporting period. On a standalone basis, its net profit rose at 14 per cent to Rs 125 crore during the quarter while sales rose 19 per cent to Rs 917 crore.

"These are very good numbers in challenging times. The numbers were driven by excellent performance all across our business, both in the domestic as well in the overseas markets, from where we get over 40 per cent of our revenues. The new products launched during the period also helped in getting these numbers," company chairman Adi Godrej told PTI.

When asked about cost pressure, he said it has been coming down due to the fall in the veg oil prices. As to whether the company is looking at increasing prices to protect margins, Godrej said: "Not immediately."

"We remain focused on our 3x3 strategy of driving to leadership in our three core categories in emerging markets across Africa, Latin America and Indonesia," he said. In personal wash category, sales grew 24 per cent with a volume growth of 6 per cent, while household insecticides

grew 20 per cent, which is 1.5 times the category growth. Hair care gained momentum with sales growth of 10 per cent, he said.

Overall domestic sales grew 19 per cent, driven by strong growth across the categories, while international sales grew 32 per cent with strong growth across the geographies. During the quarter, the company extended the Cinthol brand into bath and fragrances spaces.

The Megasari brand, which it bought in Indonesia last year, registered strong sales of over 37 per cent at Rs 316 crore, led by continuous marketing investments, new product launches and distribution expansion, the company said.

During the quarter, its household insecticide brand HIT became the largest brand in terms of market share. Its Africa business comprises Rapidol, Kinky, Tura and Darling group. Cumulative sales rose to Rs 163 crore. On the integration of its latest buy Darling Group in Africa, the company said it is progressing well. Its Latin American sales rose to Rs 127 crore.

In anticipation of earnings, Godrej Consumer shares were tepid on BSE on Friday with the counter rising about 0.6 per cent to Rs 724.05, while the main gauge Sensex rallied over per cent.

Source: www.moneycontrol.com

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