Godrej Consumer Products (GCPL) on Thursday reported a 13.5% year-on-year rise in consolidated net profit to Rs 491 crore for the quarter ended September 30 (Q2FY25), marginally below Street estimates of Rs 499 crore.
Revenue from operations was up nearly 2% y-o-y to Rs 3,667 crore, which compares favourably with a Rs 3,631-crore estimate by analysts polled by Bloomberg for the period.
Earnings before interest tax depreciation and amortisation (Ebitda) grew nearly 8% y-o-y to Rs 760 crore, in line with estimates of Rs 755 crore for the period.
The company announced an interim dividend of Rs 5 per share.
Sudhir Sitapati, MD and CEO, GCPL, said that the company had delivered a steady performance, given the headwinds of oil costs and a tough domestic consumer demand scenario.
The home care segment grew by 12% overall, the company said. Household insecticide volume growth was in the mid-single digits. Goodknight liquid vaporiser’s full distribution is expected in one to two quarters. While Goodknight Agarbatti is performing well and increasing market share against illegal incense sticks, the firm said.
The personal care segment, meanwhile, grew by 3% overall. The personal wash volume, led by soaps, remains flattish and hair colour volume grew in double digits, GCPL said.
“The category (soaps) faces higher-than-anticipated inflation in palm oil, leading to margin erosion which is expected to continue for the remainder of the year. Historical trends indicate that prices may normalize in a few quarters,” the firm said.
Godrej Expert Rich Crème access packs are outperforming, and the Shampoo Hair Colour line is also experiencing strong double-digit growth. In deodorants and sexual wellness, both categories delivered strong double-digit volume growth, the company added.
Shares of GCPL closed trade 3% lower on the BSE to Rs 1,253.6 apiece.
From: financialexpress
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