GCPL Q4 Net up three-fold at Rs 389.91 cr on strong sales

FMCG major Godrej Consumer Products Ltd (GCPL) today reported over three-fold jump in consolidated net profit to Rs 389.91 crore for the fourth quarter ended March 31, 2017 driven by strong sales growth in most categories.
The company, which today announced a change in leadership with appointment of Nisaba Godrej as Executive Chairperson from May 10, 2017, had posted a net profit of Rs 124.84 in January-March period a year ago.
GCPL's net sales during the period under review was up 12.51 per cent to Rs 2,480.17 crore as against Rs 2,204.36 crore of the corresponding quarter of the previous fiscal, the company said in a statement.

Its total expenses during the period was at Rs 1,975.67 crore, up 10.99 per cent, as against Rs 1,779.90 crore.
Commenting on the results, GCPL Chairman Adi Godrej said: "In the fourth quarter of fiscal year 2017, we delivered strong operational performance with sales growth of 13 per cent, led by India, Africa and Latin America. Our EBITDA increased by 21 per cent, driven by robust margin expansion across all our businesses."
The company is "seeing a good recovery in FMCG demand in India" post-remonetisation, he added

In the January-March period, GCPL's revenue from the Indian market was up 10.31 per cent to Rs 1,354.62 crore as against Rs 1,227.91 crore of Q4/FY 2015-16.

Revenues from its Indonesian operation was at Rs 389.34 crore, up 0.82 per cent, as against Rs 386.17 crore last year. Its African market, which includes Strength of Nature, was up 47.28 per cent to Rs 482.17 crore as against 327.38 crore.
GCPL acquired US-based hair care company Strength of Nature last year.
"Africa (including Strength of Nature) delivered a strong constant currency growth of 61% (including inorganic sales of Rs 153 crore from Strength of Nature and Canon Chemicals). Our adjusted EBITDA margin increased by 40 bps year-on-year, driven by calibrated price increases and mix," said GCPL.
Contribution from other markets in Q4/FY 2016-17 was at Rs 307.20 crore as against Rs 302.04 crore.

For the entire 2016-17 fiscal, its net profit stood at Rs 1,304.08 crore, up 57.57 per cent, from Rs 827.61 crore in the previous financial year.
Net sales for the fiscal stood at Rs 9,583.70 crore, up 9.63 per cent, compared to Rs 8,741.40 crore in the previous year.
Meanwhile, in a separate filing, GCPL said that its board in a meeting held today approved a fourth interim dividend of Rs 12 per share of face value of Re 1 each for the financial year 2016-17.
The board has also recommended issue of bonus shares in the ratio of 1:1, which is one bonus equity share of Re 1 each for every one fully paid-up equity share held.

Shares of GCPL was trading at Rs 939.00 on BSE during late afternoon trade, up 10.29 per cent from previous close.