Godrej Consumer share price: Shares of Godrej Consumer Products fell by nearly 2% on Tuesday, despite the company reporting strong Q1 results and announcing a bonus issue.
Godrej Consumer share price: Shares of Godrej Consumer Products fell by nearly 2% on Tuesday, despite the company reporting strong Q1 results. The FMCG major Godrej Consumer Products’ (GCPL) reported a 80% on-year rise in net profit to Rs 405 crore in the April-June quarter, buoyed by a favourable base and expansion in operating margin. While the results came in beating analysts estimates, as a Reuters poll of equity analysts had estimated consolidated net profit at Rs 293 crore, the firm has also announced a bonus issue of shares in the ratio of 2:1.
The board of Godrej Consumer has approved issue of one equity share for every 2 equity shares held. Apart from the bonus issue, the company declared interim dividend at Rs. 2 per share for the financial year 2018-19. According to the stock exchange filing, the dividend will be paid on 21 August, 2018. Providing further details about the bonus issue, Godrej Consumer said that the bonus shares will be issued out of securities premium account available as at March 31,2018.
“The pre issue paid-up share capital as on the date of this post bonus issue letter is Rs 68,14,44,064 consisting of 68,14,44,064 Equity shares of Re. 1/- each. The post issue paid-up share capital is expected to be around Rs 102,21,66,096 consisting of 102,21,66,096 Equity shares of Re. 1/- each. The actual number of bonus shares to be issued will be determined based on the paid-up share capital, as on the record date,” said the firm in the exchange filing. Free reserves that will be used up for this bonus issue amount to Rs 34.07 crore. The bonus issue will be credited within 2 months from the date of board approval.
Commenting on the performance on the company in the latest quarter, Nisaba Godrej, Executive Chairperson, GCPL, said, “Consumer demand is improving and we expect this recovery to sustain going forward. We are accelerating the pace of innovation with differentiated and unique products. Fiscal year 2019 will be our most active yet in terms of new launches. Alongside this, we continue to manage our costs prudently and make competitive brand investments for sustainable future growth.”