Godrej Consumer (GCPL) on Monday reported a surprise consolidated net loss of Rs 1,893 crore for the quarter ended March 31, 2024 (Q4FY24), versus a net profit of Rs 452.14 crore reported in the year-ago period. This was due to exceptional items to the tune of Rs 2,376 crore reported during the quarter. Bloomberg consensus estimates had pegged a net profit for the period at Rs 507 crore.
The exceptional items included a loss on the sale of investment in Godrej East Africa Holdings of Rs 792.6 crore and an impairment provision for a diminution in the value of investment in Godrej Mauritius Africa Holdings of Rs 273.9 crore. The losses were incurred following changes in the business model and long-term strategy for Africa, the company said in a statement.
Revenue from operations for the March quarter stood at Rs 3,365.11 crore, up 6% versus Rs 3,172.21 crore reported a year ago. That compares with a Rs 3,361-crore consensus forecast on revenue by analysts tracked by Bloomberg for the period.
Underlying volume growth at a consolidated level came in at 12% in Q4, with the India business delivering volume growth of 15% during the quarter. In a statement, GCPL’s MD & CEO Sudhir Sitapati said that the company was focused on driving volume-led growth with healthy investments behind its brands.
“We are launching new products in accordance with our purpose to bring the goodness of health and beauty to consumers,” Sitapati said.
The board also recommended an interim dividend of Rs. 10 per share for the financial year 2023-24.
Shares of GCPL closed 0.06% lower on the BSE at Rs 1,250.75 apiece on Monday, even as the broader BSE Sensex remained range-bound, ending at 73,895.54, up 0.02% versus the previous day’s close.