Godrej Consumer Products Ltd. reported better-than-expected numbers during the December quarter led by a strong growth in volumes for the India business.
The company's revenue increased 9 percent from last year. However, the figure was slightly lower than the CNBC-TV18 poll of Rs 3,650 crore. The numbers were ahead of expectations on all other parameters.
Godrej Consumer Products reported India volumes growth of 3 percent, which was ahead of expectations of 1-2 percent growth.
The company managed to maintain its EBITDA margin at 20.2 percent, which was also the figure during the same period last year. Gross margin was also up by 50 basis points on a year-on-year basis and 280 basis points sequentially, despite an increase of 70 basis points in advertising spends.
CFO Sameer Shah had told CNBC-TV18 earlier this month that the company is planning on increasing spending on advertising in 2023 as it is currently lower than the industry average for the FMCG space.
GCPL's India business reported a 11 percent year-on-year growth in overall sales while margin also saw expansion.
Within the overseas business, the Indonesia business, excluding sanitisers grew 2 percent from last year. Africa business continued to do well for GCPL, registering its 11th straight quarter of double-digit sales growth.
Here's how the categories have performed during the quarter:
Household Insecticides: Third straight quarter of improvement
Non-mosquito portfolio continues to grow ahead of mosquito portfolio
Double-digit growth momentum continues in the air freshners business
Personal wash and hygiene also continues to grow in double-digits
Hair colour business witnessed growth in the teens
Access pack of Godrej Expert Rich Creme at Rs 15 is receiving an encouraging responseShares of GCPL are trading 0.9 percent higher at Rs 911.75.
(Edited by : Hormaz Fatakia)
First Published: Jan 31, 2023 2:06 PM IST
