| For quarter ending June 2024, consolidated Net sales (including other operating income) of Godrej Consumer Products has declined 3.40% to Rs 3331.58 crore compared to quarter ended June 2023. Sales of India segment has gone up 7.85% to Rs 2,162.93 crore (accounting for 64.22% of total sales). Sales of Indonesia segment has gone up 3.20% to Rs 465.13 crore (accounting for 13.81% of total sales). Sales of Africa segment fell 35.82% to Rs 544.57 crore (accounting for 16.17% of total sales). Sales of Others segment has gone up 8.05% to Rs 195.34 crore (accounting for 5.80% of total sales). Inter-segment sales came down from Rs 36.62 crore to Rs 36.39 crore. Profit before interest, tax and other unallocable items (PBIT) has slumped 2.56% to Rs 764.88 crore. PBIT of India segment fell 9.96% to Rs 570.48 crore (accounting for 74.58% of total PBIT). PBIT of Indonesia segment rose 17.88% to Rs 117.24 crore (accounting for 15.33% of total PBIT). PBIT of Africa segment rose 42.10% to Rs 62.54 crore (accounting for 8.18% of total PBIT). PBIT of Others segment rose 84.13% to Rs 14.62 crore (accounting for 1.91% of total PBIT). PBIT margin of India segment fell from 31.59% to 26.38%. PBIT margin of Indonesia segment rose from 22.07% to 25.21%. PBIT margin of Africa segment rose from 5.19% to 11.48%. PBIT margin of Others segment rose from 4.39% to 7.48%. Overall PBIT margin rose from 22.52% to 22.71%. Operating profit margin has jumped from 18.64% to 21.74%, leading to 12.69% rise in operating profit to Rs 724.43 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 45.32% to 38.33%. Purchase of finished goods cost rose from 3.49% to 6.38%. Employee cost decreased from 8.67% to 8.31%. Other expenses rose from 24.76% to 25.46%. Selling and administration expenses rose from 8.85% to 9.83%. Other income rose 11.58% to Rs 77.11 crore. PBIDT rose 12.58% to Rs 801.54 crore. Provision for interest rose 18.58% to Rs 87.75 crore. PBDT rose 11.89% to Rs 713.79 crore. Provision for depreciation fell 35.17% to Rs 49.46 crore. Profit before tax grew 18.28% to Rs 664.33 crore. Share of profit/loss were nil in both the periods. Extraordinary items were increased to Rs -20.30 crore. Provision for tax was expense of Rs 193.34 crore, compared to Rs 161.06 crore. Effective tax rate was 30.02% compared to 33.56%. Minority interest was nil in both the periods. Net profit attributable to owners of the company increased 41.36% to Rs 450.69 crore. Promoters’ stake was 63.01% as of 30 June 2024 ,compared to 63.21% as of 30 June 2023 . Promoters pledged stake was 0.66% as of 30 June 2024 ,compared to 0.66% as of 30 June 2023 .
Full year results analysis.
Net sales (including other operating income) of Godrej Consumer Products has increased 5.86% to Rs 14096.11 crore. Sales of India segment has gone up 9.71% to Rs 8,411.40 crore (accounting for 59.09% of total sales). Sales of Indonesia segment has gone up 14.25% to Rs 1,888.52 crore (accounting for 13.27% of total sales). Sales of Africa (including strength of Nature) segment fell 6.83% to Rs 3,181.31 crore (accounting for 22.35% of total sales). Sales of Others segment has gone up 4.86% to Rs 752.74 crore (accounting for 5.29% of total sales). Inter-segment sales rose Rs 136.72 crore to Rs 137.86 crore. Profit before interest, tax and other unallocable items (PBIT) has jumped 36.38% to Rs 3,286.94 crore. PBIT of India segment rose 35.33% to Rs 2,572.05 crore (accounting for 78.25% of total PBIT). PBIT of Indonesia segment rose 36.23% to Rs 450.59 crore (accounting for 13.71% of total PBIT). PBIT of Africa (including strength of Nature) segment rose 77.51% to Rs 242.98 crore (accounting for 7.39% of total PBIT). PBIT of Others segment fell 49.25% to Rs 21.32 crore (accounting for 0.65% of total PBIT). PBIT margin of India segment rose from 24.79% to 30.58%. PBIT margin of Indonesia segment rose from 20.01% to 23.86%. PBIT margin of Africa (including strength of Nature) segment rose from 4.01% to 7.64%. PBIT margin of Others segment fell from 5.85% to 2.83%. Overall PBIT margin rose from 17.92% to 23.09%. Operating profit margin has jumped from 18.25% to 20.88%, leading to 21.11% rise in operating profit to Rs 2,943.47 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 47.20% to 40.24%. Purchase of finished goods cost rose from 2.33% to 4.65%. Employee cost increased from 8.48% to 8.85%. Other expenses rose from 23.44% to 25.39%. Selling and administration expenses rose from 7.52% to 9.47%. Other income rose 59.70% to Rs 268.95 crore. PBIDT rose 23.61% to Rs 3212.42 crore. Provision for interest rose 68.64% to Rs 296.37 crore. Loan funds rose to Rs 3,222.20 crore as of 31 March 2024 from Rs 1,129.58 crore as of 31 March 2023. Inventories declined from Rs 1,537.15 crore as of 31 March 2023 to Rs 1,270.92 crore as of 31 March 2024. Sundry debtors were higher at Rs 1,535.37 crore as of 31 March 2024 compared to Rs 1,245.28 crore as of 31 March 2023. Cash and bank balance rose to Rs 546.94 crore as of 31 March 2024 from Rs 390.72 crore as of 31 March 2023. Investments rose to Rs 3,503.67 crore as of 31 March 2024 from Rs 3,028.98 crore as of 31 March 2023 . PBDT rose 20.34% to Rs 2916.05 crore. Provision for depreciation rose 1.98% to Rs 240.96 crore. Fixed assets declined from Rs 4,156.83 crore as of 31 March 2023 to Rs 1,535.10 crore as of 31 March 2024. Intangible assets increased from Rs 5,822.25 crore to Rs 8,988.50 crore. Profit before tax grew 22.33% to Rs 2,675.09 crore. Share of profit/loss were nil in both the periods. Extraordinary items were decreased to Rs -2,476.86 crore. Provision for tax was expense of Rs 758.78 crore, compared to Rs 430.27 crore. Effective tax rate was 382.78% compared to 20.17%. Minority interest was nil in both the periods. Equity capital increased from Rs 102.27 crore as of 31 March 2023 to Rs 102.28 crore as of 31 March 2024. Per share face Value remained same at Rs 1.00. Promoters’ stake was 63.21% as of 31 March 2024 ,compared to 63.21% as of 31 March 2023 . Promoters pledged stake was 0.66% as of 31 March 2024 ,compared to 0.66% as of 31 March 2023 . Cash flow from operating activities decreased to Rs 2,069.95 crore for year ended March 2024 from Rs 2,150.65 crore for year ended March 2023. Cash flow used in acquiring fixed assets during the year ended March 2024 stood at Rs 307.19 crore, compared to Rs 227.40 crore during the year ended March 2023. Other Highlights
Board declared an interim dividend of Rs 5
per share on shares of face value of Re 1 each for the financial year 2024-25. Record
Date for the purpose is Friday, August 16, 2024. The dividend will be paid on
or before Friday, September 6, 2024.
The board approved the entry of the Company
into a new business viz. Pet Care, through one of its subsidiary. This will
help diversify revenue. GCPL will invest Rs 500 crore over a period of 5 years
in its subsidiary company. Plan to commence production in second half of FY
2026.
In
Q1 FY25, India business organic volume grew by 8% YoY. Indonesia sales grew by
11% in constant currency terms, year-on-year. Africa, USA and Middle East sales
declined by 25% in INR terms on YoY basis. Latin America & SAARC sales grew
7% in INR terms and grew by 147% in constant currency
terms.
In Q1 FY25, Homecare grew 8% YoY and Personal
care grew 6%.
Management Comments :
Sudhir
Sitapati, Managing Director, and CEO, GCPL said, “We
started the year with a healthy volume growth in our key geographies of India
and Indonesia. In India, we delivered an organic volume growth of 8% and
reported volume growth of 10%. The performance was broad-based across Home Care
and Personal Care. In Indonesia, we continue to deliver robust performance with
7% volume growth. In organic terms, Africa, USA and the Middle East sales
declined by 10% in constant currency terms while 25% in INR terms due to
depreciating Naira, however, offtakes continue to remain strong. This
translated in organic consolidated revenue to decline by 1% while in constant
currency terms sales was up by 11%. Our quality of profits has been improving consistently
over the last few quarters with reported Consolidated gross margin improving by
230 bps year-on-year. Our EBITDA Margin, too, improved by 310 bps year-on-year.
We 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 drive profitable and sustainable volume growth across our
portfolio through category development. Today, we are announcing the formation
of Godrej Pet Care (GPC), a subsidiary of GCPL. Pet foods is already a ?5,000
crore category with many decades of late teens growth ahead. To give a
perspective, only ~10% of Indians own a pet of which only 10% feed packaged
food and that too only 40% of the time. Calorie conversion in India is only 4%.
China, which was remarkably similar to India 15 years ago, has 20% pet
ownership with a calorie conversion of 25%. While the opportunity is clear, we
believe that our right to win as a group is high. GAVL, our group company, is
the market leader in animal feed and has a good understanding of pet foods
R&D, with competitive advantages in supply chain. GCPL will invest the
entire capital of ?500 crore in GPC over a period of 5 years, post which we see
GPC becoming cash flow positive. GAVL will be our manufacturing and R&D
partner. Lead times to set up capex are long, and we hope to commence
manufacturing in the second half of next year.”
| Godrej Consumer Products : Consolidated Results | | | Quarter ended | Year ended |
|---|
| Particulars | 202406 | 202306 | Var.(%) | 202403 | 202303 | Var.(%) |
|---|
| Net Sales (including other operating income) | 3,331.58 | 3,448.91 | -3.40 | 14,096.11 | 13,315.97 | 5.86 | | OPM (%) | 21.74 | 18.64 | 311 bps | 20.88 | 18.25 | 263 bps | | OP | 724.43 | 642.84 | 12.69 | 2,943.47 | 2,430.46 | 21.11 | | Other Inc. | 77.11 | 69.11 | 11.58 | 268.95 | 168.41 | 59.70 | | PBIDT | 801.54 | 711.95 | 12.58 | 3,212.42 | 2,598.87 | 23.61 | | Interest | 87.75 | 74.00 | 18.58 | 296.37 | 175.74 | 68.64 | | PBDT | 713.79 | 637.95 | 11.89 | 2,916.05 | 2,423.13 | 20.34 | | Depreciation | 49.46 | 76.29 | -35.17 | 240.96 | 236.29 | 1.98 | | PBT | 664.33 | 561.66 | 18.28 | 2675.09 | 2186.84 | 22.33 | | Share of Profit/(Loss) from Associates | 0 | 0 | - | 0 | 0 | - | | PBT before EO | 664.33 | 561.66 | 18.28 | 2675.09 | 2186.84 | 22.33 | | EO Income | -20.3 | -81.78 | 75.18 | -2476.86 | -54.11 | -4,477.45 | | PBT after EO | 644.03 | 479.88 | 34.21 | 198.23 | 2132.73 | -90.71 | | Taxation | 193.34 | 161.06 | 20.04 | 758.78 | 430.27 | 76.35 | | PAT | 450.69 | 318.82 | 41.36 | -560.55 | 1702.46 | PL | | Minority Interest (MI) | 0 | 0 | - | 0 | 0 | - | | Net profit | 450.69 | 318.82 | 41.36 | -560.55 | 1702.46 | PL | | P/(L) from discontinued operations net of tax | 0 | 0 | - | 0 | 0 | - | | Net profit after discontinued operations | 450.69 | 318.82 | 41.36 | -560.55 | 1702.46 | PL | | EPS (Rs)* | 4.55 | 3.65 | 24.59 | -73.96 | 17.07 | PL | | | * EPS is on current equity of Rs 102.28 crore, Face value of Rs 1, Excluding extraordinary items. | | # EPS is not annualised | | bps : Basis points | | EO : Extraordinary items | | Figures in Rs crore | | Source: Capitaline Corporate Database |
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| Godrej Consumer Products : Consolidated Segment Results | | | Quarter ended | Year ended |
|---|
| % of (Total) | 202406 | 202306 | Var.(%) | % of (Total) | 202403 | 202303 | Var.(%) |
|---|
| Sales | | India | 64.22 | 2,162.93 | 2,005.48 | 7.85 | 59.09 | 8,411.40 | 7,667.16 | 9.71 | | Indonesia | 13.81 | 465.13 | 450.69 | 3.20 | 13.27 | 1,888.52 | 1,653.03 | 14.25 | | Africa | 16.17 | 544.57 | 848.57 | -35.82 | 22.35 | 3,181.31 | 3,414.67 | -6.83 | | Others | 5.80 | 195.34 | 180.79 | 8.05 | 5.29 | 752.74 | 717.83 | 4.86 | | Total Reported Sales | 100.00 | 3,367.97 | 3,485.53 | -3.37 | 100.00 | 14,233.97 | 13,452.69 | 5.81 | | Less: Inter segment revenues | | 36.39 | 36.62 | -0.63 | | 137.86 | 136.72 | 0.83 | | Net Sales | 100.00 | 3,331.58 | 3,448.91 | -3.40 | 100.00 | 14,096.11 | 13,315.97 | 5.86 | | PBIT | | India | 74.58 | 570.48 | 633.60 | -9.96 | 78.25 | 2,572.05 | 1,900.56 | 35.33 | | Indonesia | 15.33 | 117.24 | 99.46 | 17.88 | 13.71 | 450.59 | 330.75 | 36.23 | | Africa | 8.18 | 62.54 | 44.01 | 42.10 | 7.39 | 242.98 | 136.88 | 77.51 | | Others | 1.91 | 14.62 | 7.94 | 84.13 | 0.65 | 21.32 | 42.01 | -49.25 | | Total PBIT | 100.00 | 764.88 | 785.01 | -2.56 | 100.00 | 3,286.94 | 2,410.20 | 36.38 | | Less : Interest | | 87.75 | 74.00 | 18.58 | | 0.00 | 175.74 | - | | Add: Other un-allcoable | | -33.10 | -231.13 | 85.68 | | -3,088.71 | -101.73 | -2,936.18 | | PBIT Margin(%) | | India | | 26.38 | 31.59 | -521.81 | | 30.58 | 24.79 | 578.98 | | Indonesia | | 25.21 | 22.07 | 313.75 | | 23.86 | 20.01 | 385.07 | | Africa | | 11.48 | 5.19 | 629.79 | | 7.64 | 4.01 | 362.91 | | Others | | 7.48 | 4.39 | 309.26 | | 2.83 | 5.85 | -302.00 | | PBT | 100.00 | 644.03 | 479.88 | 34.21 | 100.00 | 198.23 | 2,132.73 | -90.71 |
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