Beating street estimates, Godrej Consumer Products Ltd (GCPL) has reported a higher-than average rise in net profit and net sales for the quarter-ended December.
The consolidated net profit rose by 40 per cent to Rs 118.82 crore, as against Rs 85.12 crore last year. Consolidated net sales, meanwhile, increased to Rs 980.40 crore, as against Rs 517.57 crore last year, up 89 per cent.
Analysts attribute the topline and bottomline growth to the series of acquisitions the company completed in the first half of this financial year. Within a few months, GCPL wrapped up five acquisitions, namely, Nigerian company Tura, Indonesian major Megasari Makmur, Sara Lee’s 51 per cent stake in the Indian joint venture Godrej Sara Lee, Issue and Argencos.
These companies, whose numbers have now been consolidated with GPCL’s books of accounts, have helped the latter increase revenues from international business to 35 per cent of the overall revenues. The balance constitutes revenues from its domestic business, which saw two acquisitions — Swastik Shikakai and Swastik Neem and Genteel wool wash from the Mumbai-based Priya Kothari group — during the third quarter.
“The acquisition of Genteel extends leadership in the specialty liquid detergents category. The acquisition of Swastik will consolidate our number two position in the personal wash category in India,” GCPL chairman Adi Godrej said.
The company continued to be the market leader in household insecticides, increasing its share to 37 per cent during the quarter, as against 33.9 per cent in the year-ago period, Godrej said.
It also continues to retain its number two spot in the soaps category after Hindustan Unilever. In the hair colour category, GCPL has retained its market share of 29.4 per cent.
“Our performance is a reflection of our continuing endeavour to drive profitable growth. Enhanced penetration and improved volumes have driven the growth in sales. Continuing focus on optimising our category mix is also enabling us improve profitability. Our international operations have performed strongly during the period under review. The macro economic environment is improving. We continue to explore opportunities to strengthen our presence and competitive position in the home care, personal wash and hair care space,” Godrej said.