Godrej Consumer's net profit rise by 44% in Q2FY17; European biz hit by Brexit
In India business, the company's net sales increased by 7% to Rs 1,305 crore.
Consumer goods major Godrej Consumer Products Ltd (GCPL) on Monday announced its financial results for the quarter ended on September 30. The company registered a Consolidated net profit of Rs 318.1 crore during the quarter, a rise of 43.6% as compared to Rs 221.4 crore during the same period last year.
The company's total income increased from Rs 2216.7 crore for Q2FY16 to Rs 2456 crore in Q2FY17. For Q2FY17, the EBITDA increased by 12% to Rs 282 crore.
Commenting on the performance of the company, Adi Godrej, Chairman, Godrej Group, said, "We have delivered a relatively strong operating performance in the second quarter of fiscal year 2017, with a consolidated constant currency sales growth of 15% and constant currency EBITDA growth of 17%. We continue to deliver EBITDA growth ahead of sales growth, despite a strong base from the previous year".
In India business, the company's net sales increased by 7% to Rs 1,305 crore led by 9% volume growth. For international business, sales grew by 25% on a constant currency basis.
In the International market, European business constant currency sales declined by 2% due to the overall weakness in demand post Brexit, increased competitive intensity in deodorants and counterfeit issues in Bio-Oil, the company said in a release.
Talking about the outlook of the coming quarters, Godrej said, "Going forward, we expect consumer demand to gradually improve, particularly in rural India. Multiple tailwinds such as a good monsoon, MSP increase and pension scheme benefits will lead to better growth for the FMCG sector in India in the quarters ahead. We are relentlessly focusing on our strategy and continuing to invest in building a sustainable platform for the future".
At 1328 hours, the shares of the company were trading at Rs 1528.55 per piece, up 0.24%, or Rs 3.65 on BSE.