GCPL profit up 12.39% to INR 265 crore

Sapna Agarwal, Livemint, 28 April 2015

Mumbai: Godrej Consumer Products Ltd on Tuesday reported a 12.39% increase in its consolidated net profit to Rs. 265.57 crore in the quarter ended March compared with Rs. 236.28 crore a year ago.

Net sales rose 8.3% to Rs. 2,092.02 crore from Rs. 1,931.52 crore a year ago.

A Bloomberg poll of 21 analysts had estimated net profit at Rs.269.30 crore on net sales of Rs. 2,164.3 crore for the March quarter.

“Our performance in the second half of 2014-15 has been much better than that in the first half,” said Adi Godrej, chairman of GCPL, in a statement to the BSE.

The India business of the company recorded a net profit rise of 13% to Rs 188 crore on sales of Rs. 1,134 crore for the March quarter. Net sales in India grew by 12% over the year-ago period.

In the international businesses, in Indonesia, while business was affected by trade de-stocking, floods affected the demand for household insecticides. The Indonesia business saw relatively moderate constant currency sales growth of 6%, said the company.

The European business grew 7% and saw its operating margins decline by 80 basis points due to high brand investments. One basis point is one hundredth of a percentage point.

The Africa and Latin America businesses grew at more robust rates. “The Africa business grew at 23% led by the significant outperformance of the Darling business,” the company said.

GCPL has bought a 51% stake in hair care company Darling Group Holdings, which operates in 14 countries across sub-Saharan Africa. Operating margins were hit due to steep currency depreciation, said the company.

For GCPL, Latin America grew at 27% led by success of new launches and market share gains. The operating margins improved by 21%, an expansion of 130 basis points over the year-ago period.

Shares of GCPL fell 2.34% to close at Rs. 1,098.50 on the BSE. The exchange’s benchmark Sensex was up by 0.81% to 27,396.38 at the close.