GCPL Q3 profit up 23% to INR 323 crore

Sapna Agarwal, Livemint, 27 January 2016

Household and personal care company Godrej Consumer Products Ltd (GCPL) on Wednesday reported a 23% rise in consolidated net profit for the quarter ended 31 December on account of lower commodity costs and stringent cost management.

The maker of Cinthol soaps and Hit insecticides beat analyst expectations with a net profit of Rs. 323 crore as against Rs. 264 crore for the year-ago period.

Consolidated total income rose 6% to Rs. 2,354 crore from Rs. 2,226 crore a year ago.

A Bloomberg poll of over 25 analysts had estimated net profit of Rs. 322.80 crore and net sales of Rs. 2,432.20 crore.
Net profit for India business grew 18% and net sales 8%, led by 9% volume growth.

The growth came on account of double-digit volume growth in its household insecticides segment and mid-single digit volume growth in soaps, the company said in its earnings update statement while sharing that growth rates were adversely impacted by Chennai floods and late onset of winter.

Sales growth of the household insecticides segment was at 15%, soaps at 2% while the hair colour segment shrunk by 1% in India in the December quarter compared to the year-ago quarter.

During the quarter, the company launched Aer Pocket in bathroom air fresheners and also continued with its plan to premiumise its portfolio by expanding its handwashes, sanitisers and BBLUNT salon range.

The international business grew 32% and net sales 3% in the December quarter over the year-ago quarter.

“In a challenging operating environment, we have delivered a resilient and competitive performance... well ahead of the market growth,” said Adi Godrej, chairman, Godrej Group.

Earlier in the month, Hindustan Unilever Ltd, India’s largest consumer packaged goods company by sales, had said that the slowdown in rural India along with deflationary trends in input costs have impacted its sales growth.

The GCPL stock was trading marginally higher by 0.16 % higher at 12.40pm at Rs. 1,152.05 on the BSE, while the benchmark index Sensex was up by 0.51% at 24,610.99 points.