Godrej Consumer Products Ltd reported a decline of 25.06 percent in its consolidated net profit at Rs 358.86 crore for the second quarter that ended September. It had posted a net profit of Rs 478.89 crore in the July-September quarter a year ago, GCPL said in a regulatory filing.
The revenue from the sale of products of the Godrej group's Sudhir Sitapati, MD and CEO, GCPL FMCG arm was up 7 percent at Rs 3,364.45 crore during the quarter under review, as against Rs 3,143.61 crore in the corresponding period last fiscal.
GCPL's total expenses were 14.41 percent up at Rs 2,951.38 crore in the September quarter. It was reported at Rs 2,579.45 crore last year.
Sudhir Sitapati, MD and CEO, GCPL said, "Our overall EBITDA declined by 15 percent driven by consumption of high-cost inventory, upfront marketing investments, and a weak performance in our Indonesia and Latin America and SAARC businesses. PAT without exceptional items and one-offs declined by 21 percent. From a category perspective, in India, we saw continued momentum in Personal Care, which grew by 18 percent. Home Care grew by 2 percent."
The company's India revenue was up 8 percent to Rs 1,985.03 crore in the September quarter from Rs 1,838.14 crore in the preceding year. Revenue from the Indonesian market was down 8.15 percent to Rs 408.66 crore, as compared to Rs 444.93 crore in the previous year.
Its revenue from the Africa (including Strength of Nature) market was up 15 percent at Rs 858.66 crore over Rs 748.54 crore. While, revenue from other markets was up marginally to Rs 174.40 crore in the second quarter of FY 2022-23, as against Rs 172.72 crore earlier.
"Our Africa, the USA, and Middle East business continued its robust growth trajectory, growing at 15 percent in Rs and 13 percent in constant currency terms. Performance in our Indonesian business was weak, declining by 8 percent in Rs and 11 percent in constant currency terms," Sitapati said.
With inflationary pressures abating, Sitapati said he expects a recovery in consumption and gross margins alongside continued higher marketing investments with a significant focus on reducing controllable costs.
"We continue to have a healthy balance sheet and our net debt to equity ratio continues to drop. We are on a journey to reduce inventory and wasted cost and are deploying this to drive profitable and sustainable volume growth across our portfolio through category development," he said.