The Hindu Business Line : Godrej Consumer Q3 net at Rs 18 cr; to pay 50% interim

GODREJ Consumer Products Ltd (GPCL) has reported a 21 per cent increase in its profit after tax (PAT) at Rs 17.94 crore during the third quarter of current fiscal compared to Rs 14.78 crore in the year-ago period.

"Judicious media buying and continued thrust on economic value add (EVA) have contributed to improved operating efficiencies and healthy profit after tax improvement," the company said. The company's board has declared a 50 per cent interim dividend.

However, revenue for the quarter declined by one per cent to Rs 128.3 crore compared to Rs 128.93 crore in the year-ago period. This is mainly because of a considerable reduction in contract manufacturing activity undertaken by the company.

The company's brand sales moved up three per cent to Rs 125 crore. The company said that its EVA improved to Rs 15 crore, an increase of 26 per cent over the corresponding period last year.

For the nine-month period, Godrej reported a 10 per cent increase in PAT at Rs 45.6 crore from Rs 41.6 crore in the year-ago period. Sales revenue (net of excise) was higher by 1 per cent from Rs 362.4 crore to Rs 367.6 crore.

The growth in Godrej brands helped to offset the decline in contract manufacturing. In a market, which showed negative growth of five per cent, the brands grew two per cent. The company's board has approved a fresh proposal for buyback of equity shares through the open market at a maximum price of Rs 200 per share subject to a maximum outlay of Rs 8.4 crore subject to shareholders approval. This will commence after the completion of the ongoing buyback programme, in which Rs 2.1 crore of the maximum outlay of Rs 3.7 crore has been utilised.