Results: GCPL net profit jumps 59% to Rs 366 crore in March quarter
Results: GCPL net profit jumps 59% to Rs 366 crore in March quarter

FMCG major Godrej Consumer Products Ltd (GCPL) on Tuesday reported a 59.13 per cent increase in its consolidated net profit to Rs 365.84 crore for the fourth quarter ended March 2021.

The company, whose board on Tuesday appointed HUL former executive director Sudhir Sitapati as the managing director and CEO, had posted a net profit of Rs 229.90 crore in the January-March quarter a year ago, GCPL said in a BSE filing.

Its net sales during the January-March 2021 were up by 26.87 per cent to Rs 2,705.69 crore, against Rs 2,132.69 crore in the year-ago period.

GCPL Chairperson and Managing Director Nisaba Godrej said, "We delivered a third consecutive quarter of double-digit sales growth. Consolidated sales grew 27 per cent and Ebitda (earnings before interest, tax, depreciation and amortisation) grew by 21 per cent." GCPL's total expenses were at Rs 2,259.12 crore, up 26.07 per cent in the March 2021 quarter as against Rs 1,791.93 crore a year ago.

"From a category perspective, we saw continued strong growth momentum in the 'household insecticides' and 'hygiene' categories. Hygiene grew 38 per cent, 'household insecticides' rose 28 per cent, and 'value for money' products grew by 27 per cent," she added.

GCPL's India revenue was up 34.63 per cent to Rs 1,499.74 crore in the January-March 2021 quarter, against Rs 1,113.94 crore a year ago.

Its volume grew by 29 per cent in India during the January-March 2021 quarter.

Revenue from the Indonesian market was up 4.84 per cent to Rs 471.13 crore, compared with Rs 449.36 crore a year ago.

While GCPL's revenue from the Africa market, including that of Strength of Nature, was up 30.23 per cent at Rs 630.37 crore as against Rs 484.03 crore a year ago.

"Our Africa, USA and Middle East business continued its robust growth trajectory, growing at 30 per cent in the Indian rupee and 36 per cent in constant currency terms.

"Our Indonesian business delivered growth of 5 per cent in the Indian rupee and 4 per cent in constant currency terms, on a positive growth base," said Godrej.

Revenue from other markets was also up 31.49 per cent to Rs 178.70 crore in January-March 2021, against Rs 135.90 crore.

For the fiscal year 2020-21 ended on March 31, 2021, GCPL's net profit was up 14.98 per cent at Rs 1,720.82 crore. It was Rs 1,496.58 crore in the previous year.

Its net sales in the fiscal were 11.29 per cent to Rs 10,936.01 crore. It was Rs 9,826.51 crore in 2019-20.

Nisaba Godrej said GCPL will continue to focus our efforts where the demand is - in 'household insecticides', 'hygiene', and 'value for money'.

"We are investing behind consumer-centric innovations and serving our consumers across all price points.

"To enable this, we are strengthening our supply chain operations and distribution networks. We are also building up our digitisation capabilities and channels like e-commerce and chemists," Godrej said.

GCPL remains confident of leveraging growth opportunities to drive sustainable and profitable sales growth across its portfolio in FY22.

"We will continue to carefully navigate the challenges of the second wave of COVID-19 in India by ensuring seamless supply chain deliveries, and closely tracking shifts in consumer behaviour to respond to," she added.

Shares of Godrej Consumer Products Ltd on Tuesday settled at Rs 715.95 apiece on the BSE, up 0.92 per cent from the previous close.

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Free Press Journal