Godrej Consumer Products Ltd.'s quarterly profit beat estimates, driven by new launches and higher volumes.
The consumer goods maker's net profit rose 13.8 percent year-on-year to Rs 362 crore in the quarter ended September, according to the company's exchange filing. That's higher than the Rs 351 crore consensus estimate of analysts tracked by Bloomberg.
Revenue increased 6.2 percent year-on-year to Rs 2,506 crore on a 10 percent growth in domestic volumes. That compares with the estimate of Rs 2,527 crore.
Godrej Consumer Products' earnings before interest, tax, depreciation and amortisation rose 14 percent to Rs 532 crore, while operating margin expanded to 21.2 percent from 19.7 percent in the year-ago quarter.
Post GST, the trade channels are getting back to normal and consumer offtakes have improved. We remain optimistic that consumer demand will continue to pick up in the second half of the fiscal year.Nisaba Godrej, Executive Chairperson, Godrej Consumer Products
Shares of the company rose as much as 3.6 percent to Rs 967.4 apiece after the earnings announcement on the National Stock Exchange. In comparison, Nifty FMCG Index was trading 1.5 percent higher.
Other Highlights
- Soaps delivered robust growth of 26 percent, led by strong double-digit volume growth.
- Household insecticides grew 4 percent on a high base of 18 percent growth in second quarter of the last financial year.
- Hair care sales rose 4 percent, led by higher volume.
- International business grew 9 percent, driven by Latin America, Africa and Europe while Indonesia continued to show weakness.
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