Don’t miss the latest developments in business and finance.

Godrej Consumer hits record high as Q3 PAT rises 6% YoY

Image
Last Updated : Feb 01 2024 | 3:50 PM IST

Godrej Consumer Products zoomed 10.90% to Rs 1,291 after the company reported 6.35% rise in consolidated net profit of Rs 581.06 crore in Q3 FY24 as compared with Rs 546.34 crore in Q3 FY23.

Revenue from operations rose 1.54% year on year (YoY) to Rs 3,622.80 crore in the quarter ended 31 December 2023.

Profit before tax stood at Rs 783.44 crore in Q3 FY24, registering the growth of 17.79% as compared with Rs 665.11 crore in Q3 FY23.

Consolidated EBITDA grew 16% year on year in Q3 FY24 while EBITDA margin stood at 23.2%.

During the quarter, the India business sales grew by 9% to Rs 2,160 crore and volume rose by 12%. While the Home Care category recorded a rise of 5%, Personal Care category reported a growth of 2%. EBITDA grew by 18% to Rs 641 crore in Q3 FY24.

During the quarter, Indonesia business reported strong volume growth at 9%; sales grew by 7% in constant currency terms. EBITDA margin was at 20.9%, up by 70 bps YoY.

The company's Africa, USA and Middle East cluster delivered sales growth of 14% in constant currency terms while performance in INR terms was impacted by the devaluation of Naira. FMCG categories continued to grow in double digits. EBITDA margin stood at 11.4%, up 250 bps YoY, led by gross margin expansion and mix improvement.

More From This Section

Latin America and SAARC (LATAM) business sales declined by 45% in INR terms and grew by 181% in constant currency terms, on YoY basis. LATAM business has been severely impacted on account of the sharp devaluation of the Argentinian Peso, which has impacted nine months of revenue (due to hyper-inflation accounting). However, the impact on operating profit remains minimal. The upcoming quarter should see normative performance, stated the firm.

Sudhir Sitapati, managing director and CEO, said, We continue to deliver steady performance in Q3FY24 despite challenging market conditions. Our Consolidated volumes grew by 8%, led by the India business growing volumes at 12% and Indonesia growing volumes at 9%. Our Consolidated revenue growth was significantly impacted by the devaluation of the Naira and the Argentine Peso with sales growing at 2% in INR terms and 19% in constant currency terms.

Our quality of profit continues to improve consistently on the back of superior growth in higher margin countries and categories. Our reported consolidated gross margin improved sharply by 470 bps YoY and 100 bps QoQ. Our EBITDA margin, too, improved by 280 bps YoY, despite continued media investments, which increased by 32% YoY. We continue to remain focused on driving volume-led growth along with healthy investments in our brands and improvement in profitability.

We continue to have a strong balance sheet. We are on track in our journey to reduce wasted cost and are deploying this to drive profitable and sustainable volume growth across our portfolio through category development.

Godrej Consumer Products is an Indian consumer goods company. The company's products include soap, hair colorants, toiletries and liquid detergents.

The counter hit a life-time high of Rs 1,299.90 in today's intraday session.

Powered by Capital Market - Live News

Also Read

First Published: Feb 01 2024 | 10:53 AM IST

Next Story