 "Godrej Consumer Products Q1FY25 results: Net profit rises 41% to Rs 451 cr")
Godrej Consumer Products Ltd (GCPL) on Wednesday reported 41.36 per cent jump in consolidated profit after tax at Rs 450.69 cr for June quarter FY25 benefiting from lower raw material costs.
The company, which had posted a profit after tax (PAT) of Rs 318.82 cr in the same quarter last fiscal, said its board has approved entry into a pet care business through one of its subsidiaries and will invest Rs 500 cr over a period of 5 years.
Total revenue from operations in the quarter stood at Rs 3,331.58 cr as against Rs 3,448.91 cr in the same period last fiscal, GCPL said in a regulatory filing.
Total expenses in the first quarter were lower at Rs 2,744.36 cr as compared to Rs 2,956.36 cr in the year-ago period. Cost of raw materials, including packing material consumed, was lower at Rs 1,289.68 cr as against Rs 1,641.25 cr.
The company said its board has declared an interim dividend of Rs 5 per share of face value of Re 1 each for financial year 2024-25.
The board also approved entry of the company into a new business -- pet care, through one of its subsidiaries.
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"GCPL will invest Rs 500 cr over a period of five years in one of its subsidiary companies," it said, adding the company plans to commence production in the second half of FY 2026.
Pet foods is a Rs 5,000 cr category, with a potential of strong double-digit growth for the next few decades, GCPL said on the expected benefits of the new business.
In the first quarter, the company said its India business revenue was higher at Rs 2,162.93 cr as compared to Rs 2,005.48 cr in the same period last fiscal. Indonesia clocked revenue of Rs 465.13 cr, up from Rs 450.69 cr in the year-ago period.
Africa business, including Strength of Nature, revenue in the first quarter was at Rs 544.57 cr, down from Rs 848.57 cr in the same quarter a year ago, the company said.