Godrej Consumer Q2 net profit rises nearly 14 pc to Rs 523 cr

New Delhi, Oct 29 (PTI) Godrej Consumer Products Ltd on Thursday reported a 13.84 per cent year-on-year increase in its consolidated net profit to Rs 522.92 crore for the September quarter of FY27, driven by volume growth.

     It had posted a net profit of Rs 459.34 crore in the July-September quarter a year ago, according to a regulatory filing.

     Total Revenue from operations rose 19 per cent to Rs 4,413.09 crore in the quarter under review, against Rs 3,708.19 crore in the corresponding period of the preceding fiscal.

     In Q2 FY27, consolidated sales grew by 19 per cent YoY on the back of underlying volume growth of 8 per cent, the company said in its earnings statement.

     The FMCG major reported a 12 per cent YoY growth in Ebitda (earnings before interest, taxes, depreciation, and amortisation).

     Total expenses of GCPL stood at Rs 3,758.26 crore, up 20.6 per cent YoY, in the second quarter of FY27.

     “We delivered strong broad-based underlying volume growth across India, Indonesia and Africa, despite subdued monsoon conditions in India, while supported by tailwinds in Indonesia,” said its Managing Director and CEO Aasif Malbari, commenting on results.

     This marks GCPL’s second consecutive quarter of high-teens revenue growth with high-single-digit underlying volume growth and double-digit profit growth, he added.

     Revenue of GCPL from the Indian market, where it operates with brands such as Good Knight, Cinthol and HIT, grew 12.81 per cent to Rs 2,654.07 crore.

     On a standalone basis, which mainly consists of domestic business, GCPL's underlying volume grew 7 per cent.

     “This is despite an estimated 150 basis points impact from trade inventory correction in the quarter. While there has been a modest near-term impact on growth, we believe that maintaining healthy channel stock levels is important for operational excellence and the sales team to remain focused purely on offtakes,” he said.

     In the Home Care segment, it delivered 19 per cent value growth led by strong performance in air fresheners and home care liquids.

     “Personal Care delivered value growth of 8 per cent. Soaps remained stable despite significant price increases and grammage reductions, although with a favourable comparator,” he said.

     Revenue from GCPL's second biggest market, Indonesia, stood at Rs 538.29 crore, up 20.1 per cent YoY in the September quarter. Its business in the country is on the path to recovery on underlying volume and profit growth as “as per plan”.

     The company “delivered strong 8 per cent UVG and 20 per cent sales growth led by broad-based growth across categories. Ebitda growth was at 12 per cent despite LPG price increase”, it said.

     GCPL's revenue from the Africa (including Strength of Nature) market was up 47 per cent to Rs 1,070.54 crore in the September quarter. In the zone, the Godrej Industries Group (GIG) FMCG arm reported its seventh consecutive quarter of top-line growth and 11th consecutive quarter of bottom-line growth, with underlying sales growth (USG) of 40 per cent, or 23 per cent in constant currency terms.

     The performance was broad-based across product categories and geographies, with its wet hair and Aer portfolios continuing to expand across markets. The company has also piloted Goodknight incense sticks in Nigeria, receiving strong initial consumer feedback.

     GCPL's revenue from the other segment, which includes revenue from Latin America and other markets, was up 40.35 per cent to Rs 284.11 crore in Q2 FY27.

     Shares of Godrej Consumer Products Ltd on Thursday settled at Rs 834 apiece, up 1.77 per cent, on the BSE.

(This story has not been edited by THE WEEK and is auto-generated from PTI)