Godrej Consumer Q2 net profit up 44% to Rs 318 crore

Godrej Consumer Products Ltd (GCPL) on Monday reported a jump of about 43.7 % in its consolidated net profit of Rs 318.12 crore for the second quarter ended September 30, 2016-17.

It had reported net profit of Rs 221.43 crore in the July-September period of 2015-16, GCPL said in a BSE filing. Its consolidated total income from operations was up 11.01 % during the quarter under review to Rs 2,439.35 crore as against Rs 2,197.28 crore a year ago. Its total expenses were up 10.94 % to Rs 2,009.27 crore as against Rs 1,811.05 crore of the second quarter of last fiscal. "We have delivered a relatively strong operating performance in the second quarter of fiscal year 2017, with a consolidated constant currency sales growth of 15 % and constant currency EBITDA growth of 17 %. We continue to deliver EBITDA growth ahead of sales growth, despite a strong base from the previous year," said Godrej Group Chairman Adi Godrej said.

GCPL's revenue from India market was up 7.13 % to Rs 1,319.46 crore as against Rs 1,231.55 crore during the period, while contribution from global markets was Rs 1,144.09 crore, up 15.51 %, as against Rs 990.45 crore. "Our international business grew by 25 % on a constant currency business. We delivered strong growth in Africa and Latin America. Our Indonesian business experienced temporary challenges due to an adverse season for Household Insecticides," he said. GCPL's revenue form its Indonesian business was Rs 367.11 crore, up 6 % as against Rs 346.32 crore in the corresponding quarter of last fiscal. "Our Indonesia business constant currency sales declined by 2 % due to the overall macroeconomic slowdown and adverse weather impact in Household Insecticides," the company said. Revenue from Africa, which also includes Strength of Nature, was Rs 508.18 crore, up 58.19 % to Rs 321.24 crore.

While Contribution from other markets was down 16.75 % to Rs 268.80 crore as against Rs 322.89 crore. "The significant devaluation in several emerging market currencies also impacted our reported growth," said Godrej. In the first half of 2016-17, GCPL's consolidated net profit was up 68.16 % to Rs 563.38 crore as against Rs 335.02 crore in the year ago period. GCPL's consolidated total income in the first half of the current fiscal was up 8.76 % at Rs 4,633.54 crore as against Rs 4,259.95 crore in the same period last year. GCPL stock was trading at Rs 1,528, down 0.20 %, on BSE.