GCPL Okays Buyback At Rs 175 A Share, Posts 32% Higher Profit

Mumbai, October 22: | Updated: Oct 23 2002, 05:30am hrs
The board of Godrej Consumer Products Ltd (GCPL) has approved a third buyback from open market at a price not exceeding Rs 175 per share. The maximum outlay for the buyback is Rs 10 crore and is subject to shareholders approval.

GCPL has completed its second buyback and bought back 41,962 shares at an average price of Rs 111 aggregating Rs 4.6 crore consisting of 0.7 per cent of the equity capital.

Despite a slowdown in the fast moving consumer goods (FMCG) industry, GCPL has posted a 32 per cent increase in net profit for the second quarter ended September 30, 2002 at Rs 14.02 crore as compared to Rs 10.66 crore for the corresponding period previous fiscal.

During the quarter under review, the company generated total sales (net of excise) of Rs 118.64 crore, a growth of 16 per cent over the sales of Rs 101.86 crore in the corresponding period of the previous year. For the half year ended September 30, 2002, the company has posted a 35 per cent increase in net profit at Rs 26.79 crore as against Rs 19.83 crore in the same period during the previous fiscal. Its turnover of Rs 233.51 crore is up 2 per cent over the corresponding period of the previous year.

Said GCPL chairman and managing director Adi Godrej, Despite poor monsoons and a worrisome economic situation, GCPL has been able to grow its sales and profitability, thereby consistently providing value to its shareholders. In keeping with our philosophy of rewarding shareholders, we have declared a second interim dividend. He further added, We will continue to focus on our power brands, and intend to improve the topline growth through new product launches and brand-building initiatives. Our new IT initiative will make our supply chain and distribution network more efficient.

During the quarter under review, GCPLs toilet soap brands grew 16 per cent, while the hair colours grew 18 per cent by value. The export of the company grew by 23 per cent in the half year ended September 30, 2002.

Said GCPL executive director and president Hoshedar K Press: Cinthol International herbal soap was launched in the Middle East market along with hand sanitizer, hand wash and shower gel. Exports to South Africa has also started. A third party manufacturing facility has been tied up for Hair Colours in Bangladesh to cater to the local market and the manufacturing is expected to start within few months. We are exploring new export markets in South East Asian countries and we are hopeful of making a foray into Indonesia very soon.

As far as corporate initiative is concerned, GCPL has completed divisionalisation of its business into two focussed groups, soap and personal care with each group having separate manufacturing, purchase and marketing responsibilities.

The board of directors of the company has declared a second interim dividend of Rs 2 per share taking the total dividend declared for 2002-03 to Rs 4 per share (100 per cent).