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Godrej Consumer slips as Q4 EBITDA margin declines

Q4 EBITDA margin declined to 16.3% from 18.8% in a year ago quarter.

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SI Reporter Mumbai
Last Updated : Apr 30 2013 | 1:10 PM IST
Godrej Consumer Products is trading lower by 1.4% at Rs 844, falling 6.4% from intra-day high, after reporting about 300bps decline in EBITDA or operating margin to 16.3% for the quarter ended March 2013 (Q4).

The stock opened at Rs 873 and hit a high of Rs 902 on BSE before the announcements of Q4 results. A combined around one million shares have changed hands on the counter till 1302 hours on BSE and NSE.

The company’s consolidated EBITDA jump 12% at Rs 279 crore, while net sales grew Rs 1,716 crore on year-on-year (yoy) basis. “Our EBITDA growth has  been lower than sales growth during this quarter on the back  of high marketing investments for the new launches,” says Adi Godrej, chairman of the company.

Going forward,  we  remain optimistic of continuing the  strong sales growth momentum and expect our profit performance to improve on  the back of stronger traction  from our launches and favourable input prices, added Godrej.

Meanwhile, the personal products maker has reported 73% year-on-year (yoy) jump in its consolidated net profit at Rs 334 crore mainly due to one-time gain of Rs 129 crore divestment of its non-core foods business. The company had profit of Rs 193 crore in a year ago quarter.

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First Published: Apr 30 2013 | 1:05 PM IST

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