Godrej Consumer Products Ltd Q4FY23 net profit grows 25 pc y-o-y to Rs 452 cr

In the financial year 2023, the company’s consolidated net profit fell 4.5 percent to Rs 1,702.5 crore, while revenue grew 8.5 percent to Rs 13,316 crore.

In the quarter ended March 2023, the revenue of the Indian business witnessed a year-on-year growth of 11.5% to reach Rs 1,823 crore, while that of Indonesia increased by 8% to Rs 434.50 crore.

However, the growth rate in Africa was comparatively slower, with a 6.5% year-on-year increase in turnover to Rs 770 crore.

The underlying volume experienced a year-on-year growth of 6% in the consolidated, whereas in India, the growth rate was higher at 11%.

The consolidated operating profit witnessed a significant increase of 32% compared to the previous year, while for the India business, the growth was slightly lower at 26%.

In the India business, the operating margin showed a significant expansion of 300 basis points compared to the previous year, reaching 26.6%.

This growth was accompanied by a noteworthy expansion of 550 basis points in gross margins.

In the March quarter, there was a 14% growth in sales for the home care category, while the personal care category experienced a higher growth rate of 17%. Specifically, the Personal Wash segment achieved double-digit growth, driven by robust volume growth.

The hair colour segment consistently demonstrated strong double-digit growth, benefiting from impressive performance across various formats.

Internationally, the business experienced 5% sales growth in constant currency terms, but operating margins remained unchanged at 21.5% compared to the previous year.

In Nigeria, the business performance was affected by the election and demonetisation. However, the company reported a recovery in March, indicating an improvement in the business situation.

Commenting on the business performance, GCPL CEO and Managing Director Sudhir Sitapati, “We had a strong end to the year with volume-led double-digit sales growth in 4Q FY 2023. Consolidated sales grew by 10% in INR terms and 14% in constant currency terms.

He said GCPL have continued to witness sequential improvement in volume growth with 6% year-on-year increase in Q4. The performance was broad based with India Branded business delivering stellar volume growth of 13%, led by double-digit volume growth in both Home Care and Personal Care. In Indonesia, our core business performance continued to improve with ex-Hygiene growth of 11% in constant currency terms.

The double-digit growth trajectory in our Africa, USA and Middle East business was temporarily impacted by election and demonetisation in Nigeria.

Our quality of profits has also been improving with Consolidated Gross Margin expansion of 180 bps quarter-on-quarter, 340 bps year-on-year and EBITDA Margin improvement of 360 bps year-on-year.

“We grew EBITDA by 32% year-on-year along with continued working media investments which saw a growth of 20% year-on-year. Our net profit without exceptional and one-offs increased by 29% year-on-year,” he added.