Godrej Consumer Products' consolidated net profit rose 3.55% to Rs 546.34 crore despite of 8.98% rise in revenue from operations to Rs 3,567.72 crore in Q3 FY23 over Q3 FY22.
Profit before exceptional items and tax increased by 10.13% to Rs 672.55 crore in the quarter ended 31 December 2022. During the quarter the FMCG company posted a net exceptional loss of Rs 7.44 crore as against Rs 13.77 crore posted in the corresponding quarter last year.Consolidated EBITDA grew 10% YoY while consolidated EBITDA margin improved by 20 bps YoY to 21.5% in the third quarter.
During the quarter, the India business sales grew by 11% to Rs 1,975 crore and volume rose by 3%. While the Home Care category recorded a rise of 10%, Personal Care category reported a growth of 14%. EBITDA grew by 20% to Rs 540 crore in Q3 FY23.
Meanwhile, Indonesia business sales declined 3% in constant currency terms. Sales excluding Hygiene (Saniter) saw a growth of 2% in constant currency terms. EBITDA margins, contracted by 100 bps year on year due to upfront marketing investments and scale deleverage. The company continues to put building blocks in place to drive category development and general trade distribution expansion.
The company's Africa, USA and Middle East cluster delivered double-digit sales growth of 23% in constant currency terms. Strong sales growth momentum continued in Southern and West Africa. Dry Hair and FMCG category both grew in double digits. EBITDA margins contracted 160 bps year on year due to significant increase in working media investments.
Sudhir Sitapati, managing director and CEO, GCPL, said: We delivered an all-round performance in Q3 FY23. Overall sales grew by 9% and we witnessed sharp sequential uplift in underlying volume growth. Consolidated volume grew by 1%. Our overall quality of profits has been healthy with double-digit EBITDA growth of 10%. Gross margins expanded by 330 bps quarter on quarter and 50 bps year on year. Continued upfront working media investments grew by 28%. PAT, without exceptional items and one-offs, grew by 13%.
With commodity pressures abating, we expect gradual recovery in consumption, expansion in gross margins, upfront marketing investments with a significant focus on reducing controllable costs and improvement in profitability in the coming quarters.
We continue to have a healthy balance sheet and are also net cash positive. We are on track in our journey to reduce inventory and 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.
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