GCPL Q3 net up 23% on strong volume growth

City-based Godrej Consumer has reported a 23% increase in net profit to Rs 322.9 crore for the quarter ended December 2015 versus Rs 263.57 crore a year ago. Consolidated net sales grew 6% to Rs 2354 crore versus Rs 2256 crore a year ago.

The India business, which gives GCPL a little over half of its overall revenues, grew 8%,  led by a 9% volume growth. However, price-led growth decelerated 1%, which came largely from soaps & detergents, its second-largest category after household insecticides. 

GCPL, which is the second-largest manufacturer of soaps & detergents in India, reported a 5% volume growth in the category and a 2% price-led growth, the company said. The firm derives around 35% of its revenues from soaps & detergents.

Household insecticides, which gives GCPL 45% of its revenues, grew 15%, led by double-digit volume, the company said. 

Analysts, however, say volume growth in household insecticides for GCPL was around 10-11%, offsetting to some degree lack of volume growth in other categories.

Hair colour, which gives GCPL 20% of its revenues, declined 1% in terms of topline growth. The company did not specify volume or price-led growth in the category. But analysts say this was a result of the discretionary slowdown in the category.

Of the international markets, regions such as Africa and Latin America saw double-digit sales growth, though Indonesia, one of GCPL's largest operation outside of India, saw three% sales growth for the quarter. 

The stock price of GCPL was hovering at levels of Rs 1150 a piece in afternoon trade on the Bombay Stock Exchange. Morning trade was range-bound at these levels.