Godrej Consumer Products Ltd. said its fourth-quarter earnings were affected by a slowdown in rural consumption and liquidity crunch in their distribution channels.
“We were caught a bit off-guard due to the consumption slowdown in rural and a few urban pockets,” Vivek Gambhir, the company's managing director and chief executive officer, told BloombergQuint in an interview. “We did see some liquidity pressures in the wholesale and general trade channels.”
The company's soaps and insecticides verticals were affected on account prolonged winter season, he said.
The company reported its earnings for the March-ended quarter on Friday.
Key Highlights (YoY)
- Revenue fell 3.1 percent at Rs 2,452 crore.
- Ebitda declined 3.4 percent at Rs 577 crore.
- Ebitda margin at 23.5 percent versus 23.6 percent.
- Reported net profit rose 51 percent at Rs 935 crore.
- Profits higher on tax write-back of Rs 533 crore
- Base quarter had exceptional income of Rs 193 crore
Shares of Godrej Consumer pared opening gains and declined 1.5 percent intraday to Rs 632 apiece.
Watch the full interview here:
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