Quarterly results. Godrej Consumer profit falls 7.8% to ₹318 crore

Fast-moving consumer goods (FMCG) company Godrej Consumer’s net profit fell 7.8 per cent to ₹318 crore in the June quarter against ₹345 crore reported during the same quarter last year. 

The Mumbai-based company’s profit for the quarter fell 29.6 per cent against ₹452 crore registered in the March quarter. 

Revenue from operations grew 10.37 per cent to ₹3,448 crore. (₹3,124 crore). A 7.75 per cent increase was reported against ₹3,200 crore reported in the quarter ended March. 

• Also read: Godrej Consumer expects double-digit volume growth

The company announced a capital expenditure of ₹900 crore for setting up a new manufacturing site in Tamil Nadu and Madhya Pradesh. 

“The company has its existing capacity in Home Care and Personal Care categories. The existing capacity utilisation is 75 to 80 per cent and the company plans to add 20 per cent capacity in these categories with additional investments. The project will be funded through a mix of internal accruals and debt,” the company informed the stock exchanges.

The manufacturing sites are expected to be constructed in the next 18 to 36 months 

• Also read: Godrej Properties shares down 5 per cent

Volume growth

“In organic terms, our consolidated sales increased by 9 per cent year-on-year driven by healthy volume growth of 8 per cent sales in constant currency terms, increased by 13 per cent. In India, we continued to stay the course on our strategy of volume-driven category development and delivered double-digit volume growth of 10 per cent. Our quality of profits has been improving consistently over the last few quarters with reported consolidated gross margin seeing sharp improvement of 730 bps year-on-year and 80 bps quarter-on-quarter. Our EBITDA margin, too, improved by 270 bps year-on-year along with continued working media investments which increased by 79 per cent year-on-year,” said Sudhir Sitapati, Managing Director and CEO, GCPL.

• Also read: Godrej Consumer sees volume-led growth in FY24, price-led growth in FY25

The company said the home care segment grew 14 per cent while the personal care segment grew 2 per cent during the quarter. The company’s value growth was lower than volume growth as it passed on the benefits of lower input costs to the consumer..

In international business, Africa, the US and the Middle East delivered sales growth of 16 per cent in constant currency terms. 

“In Indonesia, our performance has continued to improve aided by structural improvements implemented last year, with a 15 per cent growth in constant currency terms,” added Sitapati.