Godrej Consumer Products on Wednesday reported a consolidated net profit of Rs 432.8 crore for the July-September period, up 20.6 per cent on a year-on-year basis driven by 10 per cent growth in volumes and almost in line with analysts' expectations.  

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The Mumbai-based FMCG major's revenue increased 6.2 per cent on a year-on-year basis to Rs 3,602 crore for the second quarter of the current financial year, according to a regulatory filing.

According to Zee Business research, Godrej Consumer Products was expected to report a quarterly net profit of Rs 434 crore and revenue of Rs 3,573 crore. 

The board of the FMCG company—whose popular brands include Cinthol, Good Knight, Renew and Ezee—declared a dividend of Rs 5 per share with a record date of November 9. That marked a payout of 500 per cent given the face value of Re 1 per share. Read more on Godrej Consumer Products dividend

The company said its consolidated sales grew 16 per cent on year in constant currency terms. Its India business sales grew nine per cent, led by volume growth of 11 per cent. 

"We delivered a steady performance in 2Q FY2024, despite the tough operating environment. Our Consolidated volumes grew in double-digits at 10 per cent while sales grew by six per cent. Sales in constant currency terms grew by 16 per cent. In India, we delivered 11 per cent volume growth. In Indonesia, our performance continues to improve with double-digit constant currency growth of 14 per cent. Africa, the USA and the Middle East continue to grow in double-digits in constant currency terms, while performance in rupee terms was impacted due to the Naira devaluation," said Sudhir Sitapati, Managing Director and CEO, Godrej Consumer Products. 

"Our quality of profits continues to improve consistently over the last few quarters with reported consolidated gross margin improving sharply by 700 bps on a year-on-year basis and 110 bps on a quarter-on-quarter basis. Our EBITDA margin, too, improved by 360 bps year-on-year despite continued media investments, which increased 33 per cent on a year-on-year basis," he said.

"We continue to remain focused on driving volume-led growth along with healthy investments in our brands and improvement in profitability. We continue to have a strong balance sheet. We are on track in our journey to reduce wasted cost and are deploying this to dri ve profitable and sustainable volume growth across our portfolio through category development," Sitapati added.

Godrej Consumer Products shares ended 1.7 per cent lower at Rs 975.9 apiece on BSE ahead of the earnings announcement.

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