Godrej Consumer Products Shares Q3 Results

Godrej Consumer Products

Corporate Action
by 5paisa Research Team Last Updated: 2022-08-08T18:46:27+05:30

Godrej Consumer Products saw smart growth in the top line but the operating profits came under pressure due to the impact of higher operating costs. That has bene the bane of most of the FMCG companies in India and GCPL is not exception. However, the net profits were higher YoY on account of exceptional gains in the quarter.

Here is a Gist of Godrej Consumer Products Financial Numbers
 

Rs in Crore

Dec-21

Dec-20

YOY

Sep-21

QOQ

Total Income (Rs cr)

₹ 3,302.58

₹ 3,055.42

8.09%

₹ 3,163.65

4.39%

Operating Profit (Rs cr)

₹ 636.22

₹ 659.39

-3.51%

₹ 631.35

0.77%

Net Profit (Rs cr)

₹ 527.60

₹ 502.08

5.08%

₹ 478.89

10.17%

Diluted EPS (Rs)

₹ 5.16

₹ 4.91

 

₹ 4.68

 

Operating Margins

19.26%

21.58%

 

19.96%

 

Net Margins

15.98%

16.43%

 

15.14%

 

 

For the Dec-21 quarter, Godrej Consumer Products reported 8.1% growth in sales at Rs.3,303 crore on a YoY consolidated basis. The quarter reported steady growth of 3% in the home care vertical and 12% in the personal care segments. On a sequential basis, the revenues were up by 4.39% for Godrej Consumer Products.

The geographical spread of revenue growth was also quite interesting for the company. Godrej witnessed steady growth of 8% in the India business, 12% in the Africa and Middle East business as well as 19% growth in the Latin American and SAARC business. There was pressure only in the Indonesia business which was lower by 2% on a YoY basis. 

Let us turn to the operating profits. For the Dec-21 quarter, operating profits were down YoY by -3.51% at Rs.636.22 crore. That is largely on the back of consolidated EBITDA trending lower by 2% YoY while the EBITDA margins tapered by 210 basis points to 21.4%. The EBITDA margins of the International business trended lower at 16.2%. 

Meanwhile, the India EBITDA margins were a tad more impressive at 25.2% but input cost increases still made a significant dent on the gross profit margins. Operating margins were lower on the back of higher input and inventory costs from 21.58% in Dec-20 quarter to 19.26% in Dec-21 quarter. Operating margins were also lower on sequential basis by 70 bps.

Let us finally look at the bottom line of Godrej Consumer Products Ltd. The net profit after tax for the Dec-21 quarter was up by 5.08% at Rs.527.60 crore on a YoY consolidated  basis. This growth in the net profits was on the back of exceptional gains, despite the pressures of weak operating profits in the quarter getting transmitted to the bottom line.

The exceptional gains in the quarter came from the write-back of losses on the BBLUNT deal as well as gains from deferred taxes in the quarter. This improved the bottom line of GCPL, although it is a one-time boost. PAT margins tapered from 16.43% in the Dec-20 quarter to 15.98% in the Dec-21 quarter on higher base. PAT margins were higher on a sequential basis by 84 bps. For Dec-21 quarter, the company enjoys ROE of 18.1% and ROCE of 20.5%.


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