Godrej Consumer Experiences 14% Decline in Q3 Profit, Announces Interim Dividend

Synopsis

On January 24, Godrej Consumer Products Limited reported a net profit of Rs 498.31 crore for Q3 FY25, a 14% decline from the previous year. Despite a 3% increase in revenue, profitability was affected due to lower EBITDA margins. The company announced an interim dividend of Rs 5 per share, with payments scheduled for February 2025.

Key Takeaways

Net profit fell by 14% to Rs 498.31 crore.
Revenue increased by 3% to Rs 3,768.43 crore.
EBITDA margin decreased by 290 basis points to nearly 20%.
Interim dividend of Rs 5 per share declared.
Urban consumption slowdown noted by management.

Mumbai, Jan 24 (NationPress) Godrej Consumer Products Limited (GCPL) reported a net profit of Rs 498.31 crore for the October-December quarter (Q3) of FY25, marking a 14 percent decrease from Rs 581.06 crore during the same timeframe last year.

The company's operational revenue saw a nearly 3 percent increase, totaling Rs 3,768.43 crore in Q3, compared to Rs 3,659.64 crore in Q3 FY24.

Additionally, total income rose by over 3 percent to Rs 3,851.53 crore, up from Rs 3,729.72 crore in the previous year, as per their filing.

Even with the revenue hike, GCPL's profitability faced challenges as its EBITDA margin dropped by 290 basis points to approximately 20 percent.

In conjunction with its Q3 results, the company declared an interim dividend of Rs 5 per share. The record date for determining eligible shareholders is February 3, 2025, with the dividend slated for payment on or before February 23, 2025.

“Demand conditions in India have encountered temporary challenges in recent months, primarily due to a slowdown in urban consumption,” stated Sudhir Sitapati, MD and CEO.

He noted that the rise in palm oil prices exceeding 40 percent, coupled with weak seasonality in household insecticides, has resulted in flat underlying volume growth and mid-single digit underlying sales growth for the standalone business.

“Our categories such as air fresheners and laundry liquids have consistently shown robust double-digit underlying volume growth,” Sitapati remarked.

Meanwhile, Godrej Consumer Products recorded a 6 percent year-on-year growth in organic sales. When dissected by segments, the standalone business reported a 4 percent increase in sales, although volumes remained unchanged from the prior year.

The share price of Godrej Consumer Products closed at Rs 1,128.60 on the BSE on Friday, reflecting a 1.4 percent decline. Currently, the stock is trading approximately 27 percent below its 52-week peak of Rs 1,541.3.