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GCPL has reported a 39 per cent increase in standalone net profit at Rs 154 crore for the fourth quarter. Net sales were up by 21 per cent at Rs 807 crore. There was a 24 per cent increase in EBITA margins at Rs 163 crore during the quarter. The FMCG company has also declared its fourth interim dividend at 175 per cent (Rs 1.75 per share).
Addressing a press conference, Mr Adi Godrej, Chairman, GCPL said, “By integrating the two FMCG companies (Godrej Sara Lee and Godrej Consumer Products), we have created synergies which have led to savings on cost. There has also been innovation in the brands with high equity like GoodKnight, Godrej No. 1 and Hit.”
Sales growth in the household insecticide category was at 28 per cent while the category grew at 9 per cent. Sales growth in soaps was at 30 per cent with volume growth at 17 per cent against the category volume growth of 4 per cent during the quarter. However it lagged behind the category in hair colours with growth at 13 per cent.
“In household insecticides and soaps, we have grown faster than the category but in hair colours we have seen slower growth,” added Mr. Godrej. GCPL has re-launched its Expert powder hair dye as a hair colour. Reducing its debt equity ratio from 1:1 to 0.4:1 , GCPL would continue to take small loans to fund its business. It had raised money from private equity player, Temasek in the recent past, whereby it offloaded nearly 5 per cent of its equity capital. “We have managed to bring down the debt equity ratio and will not be raising any more equity,” added Mr Godrej. GCPL also managed to bring down its net working capital from Rs 425 crore to Rs 418 crore during the quarter. The GCPL scrip was up by 2.5 per cent and closed at Rs 539.75 on Monday.
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