Godrej Consumer Products Ltd (GCPL) on Wednesday reported its third quarter profit for the financial year 2023-24 at Rs 581.06 crore, up 6.4 per cent in comparison to Rs 546.34 crore during the corresponding quarter of previous year. It posted revenue from operations at Rs 3,659.64 crore, up 1.7 per cent as against Rs 3,598.92 crore during the third quarter of FY23. GCPL said that the company’s revenue growth was significantly impacted by the devaluation of the Naira and the Argentine Peso with sales growing at 2 per cent in INR terms and 19 per cent in constant currency terms. The company EBITDA grew by 16 per cent on-year. According to a CNBC TV18 poll, GCPL was expected to report Q3FY24 profit at Rs 565 crore and revenue for the quarter in review was estimated at Rs 3563 crore.
The company reported Q3FY24 consolidated volume growth at 8 per cent with sales growth at 2 per cent in INR terms which was impacted by devaluation, and constant currency growth of 19 per cent year-on-year.
The India business volume, it said, grew by 12 per cent and sales grew by 9 per cent on-year. Indonesia volume grew by 9 per cent and sales grew by 8 per cent in INR terms and 7 per cent in constant currency terms, year-on-year. Africa, USA, and Middle East sales declined by 8 per cent in INR terms and grew by 14 per cent in constant currency terms, on-year. Meanwhile, Latin America and SAARC sales declined by 45 per cent in INR terms and grew by 181 per cent in constant currency terms, year-on-year.
Sudhir Sitapati, Managing Director, and CEO, GCPL, said, “We continue to deliver steady performance in Q3FY24 despite challenging market conditions. Our consolidated volumes grew by 8 per cent, led by the India business growing volumes at 12 per cent and Indonesia growing volumes at 9 per cent. Our consolidated revenue growth was significantly impacted by the devaluation of the Naira and the Argentine Peso with sales growing at 2% in INR terms and 19% in constant currency terms.”
“We continue to have a strong balance sheet. We are on track in our journey to reduce wasted cost and are deploying this to drive profitable and sustainable volume growth across our portfolio through category development. We remain committed to our purpose of bringing the goodness of health and beauty to consumers in emerging markets,” he added.
Godrej Consumer Products’ Q3 performance across segments
Home Care segment grew by 5 per cent. The household insecticides volume growth was stable at low-single digit. The non-mosquito portfolio continues to consistently perform significantly well. Air Fresheners continues to consistently deliver double-digit volume growth. Fabric Care delivered strong double-digit volume growth.
Personal Care segment grew by 2 per cent. Personal Wash delivered mid-single digit volume growth. Magic Handwash continued to deliver strong double-digit volume growth. Hair Colour volumes grew in double-digit led by both Godrej Expert Rich Creme and Godrej Selfie Shampoo Hair Colour.
Park Avenue and KamaSutra continued their healthy sales run-rate delivered in Q2 and clocked sales of Rs 139 crore. The integration has been completed and synergies have started to flow from Q3.
Furthermore, the company board also approved the proposal for reappointment of Sumeet Narang as an Independent Director of the company for a second term of five years from April 1, 2024 to March 31, 2029.