Godrej Consumer Products reported a 3.55 percent increase in consolidated profit after tax in the third quarter ended 31 December 2022, to Rs 546.34 crore on Tuesday. Godrej Consumer Products (GCPL) reported a consolidated profit after tax of Rs 527.6 crore in the same quarter last year, according to a regulatory filing.
It said that the consolidated total income from operations for the quarter under review was Rs 3,598.92 crore, compared to Rs 3,302.58 crore the previous year. Total costs increased to Rs 2,969.52 crore from Rs 2,714.32 crore in the same period last year, according to the business.
Commenting on the business performance of 3Q FY 2023, Sudhir Sitapati, Managing Director and CEO, GCPL, said “We delivered an all-round performance in 3Q FY 2023. Overall sales grew by 9 per cent and we witnessed sharp sequential uplift in underlying volume growth.”
The firm’s consolidated volume grew by 1 per cent. “Our overall quality of profits has been healthy with double-digit EBITDA growth of 10 per cent. Gross margins expanded by 330 bps quarter-on-quarter and 50 bps YoY. Continued upfront working media investments grew by 28 per cent. PAT, without exceptional items and one-offs, grew by 13 per cent,” he added.
“We had broad-based growth across geographies. India delivered double-digit sales growth of 11 per cent. Our Africa, USA and Middle East business continued its strong growth trajectory, growing at 14 per cent in Rs and 23 per cent in constant currency terms,” he said.
From a category perspective, in India, the company saw broad-based double-digit growth; Personal Care grew by 14 per cent and Home Care grew by 10 per cent, he said.
On the outlook, he said,”With commodity pressures abating, we expect gradual recovery in consumption, expansion in gross margins, upfront marketing investments with a significant focus on reducing controllable costs and improvement in profitability in the coming quarters.”
The company’s continues to have a healthy balance sheet and are also net cash positive, Sitapati said, adding, “We are on track in our journey to reduce inventory and wasted cost and are deploying this to drive profitable and sustainable volume growth across our portfolio through category development.”