Mumbai: Homegrown FMCG player Godrej Consumer Products Ltd (GCPL) today reported 39 per cent 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.
The firm had reported a net profit of 143.45 crore in the first quarter of the previous fiscal. This is the eighth successive bottomline growth for the city-based company. Total income of the Adi Godrej-led company increased 10.39 per cent to Rs 2,114.46 crore from Rs 1,915.9 crore for the comparable quarter last fiscal.
“We have posted good broad-based growth for eight straight quarters,” GCPL managing director Vivek Gambhir told PTI in a concall today.
The company saw a value growth of 14 per cent in branded business and volumes spurted 13 per cent in the said quarter, he said. Attributing the higher numbers to “a combination of factors, including lower raw material prices, product innovations, and activations,” Gambhir said the company has posted double-digit growth in both rural and urban areas, with rural growing 1.6 times the urban markets.”
In contrast, the market leader HUL reported a flat growth in June quarter net income at Rs 1,059 crore due to subdued demand in rural markets, which contributes a whopping 35 per cent of its total sales.
GCPL is also powering its growth in international markets through acquisitions. The company will acquire the remaining 40 per cent stake in Chilean hair colour and cosmetics company Cosmetica Nacional to gain its full control.
“We will complete the acquisition in a month,” Gambhir
said. He, however, did not disclose the size of the deal. The company is also looking to completely acquire the operations of the African hair care company Darling Group Holdings in a phased manner.
“We are in a joint venture partnership with Darling Group in some African markets and have acquired their business in other countries. Over the next two years, we will completely take over the Group’s operations in Africa,” Gambhir said.