Godrej Consumer Products Ltd. (GCPL) reported a consolidated net profit of Rs 143.45 crore for the quarter ended June 2014, an 8 per cent rise over the year-ago period. The company’s net sales for the period rose 12 per cent to Rs 1,886 crore.
The Board of directors has declared an interim dividend of 100 per cent.
GCPL’s operating profit was up 4 per cent at Rs 242 crore while margins declined to 12.8 per cent (13.3 per cent for the corresponding period last year).
``Quarter one of fiscal year 2015 has been a particularly challenging one,’’ Adi Godrej, Chairman, Godrej Group said in a statement. ``We witnessed the fourth consecutive quarter of a significant slowdown in growth in the household and personal care sector.’’
He said the overall market slowdown and high inflation had affected both top-line and bottom-line growth in India. However, GCPL’s international business performance was very strong despite macroeconomic challenges in the international geographies, he added.
GCPL’s household insecticides business grew 9 per cent although the overall category was impacted by delayed monsoons. It’s soaps business, however, continued to decline in the quarter due to an overall drop in consumption in the mass segment.
GCPL’s hair colour business had strong growth momentum with sales up 14 per cent.
In its international business, Indonesia net sales grew 21 per cent, Africa grew 12 per cent and Latin America and Europe saw net sales growth of 26 and 21 per cent respectively during the period.
On the future, Mr. Godrej said, ``we feel optimistic that the worst is over. We are beginning to see improved consumer sentiment on the ground and are hopeful that this will start translating into better consumer demand in the quarters ahead.’’
On the Bombay Stock Exchange, GCPL moved to a high of Rs 872.65 before closing trade 0.01 per cent lower than the previous close at Rs 855.