Godrej Consumer Products Ltd (GCPL) stock dropped as much as 4.2% to Rs626.50 on Friday, its lowest since November 2017, after the company reported flat revenue and profit for the March quarter.
Godrej Consumer’s net profit climbed 51.5% to Rs935 crore during the March quarter, though helped by a deferred tax gain of Rs533 crore. Net profit without exceptions and one-off items increased by just 1% to Rs297 crore.
The company’s revenue declined by 3% to Rs2, 452.6 crore during the March quarter as against Rs 2, 531.15 crore in the year-ago quarter. Sales volume growth was also a mere 1% during the quarter.
During the financial year ended March, Godrej Consumer Product grew a tepid 6% in domestic sales to Rs 5, 557 crore.
“We delivered a relatively weak performance in the fourth quarter of the fiscal year 2019. Our India business remained soft on account of a general slowdown in staples consumption and the adverse impact of the delayed summer on our portfolio,” said Nisaba Godrej, executive chairperson at GCPL. “For the fiscal year 2020, we are planning for robust sales growth in India on the back of a continued focus on innovations and enhancements to our go-to-market model,” Godrej added.
Meanwhile, the board declared an interim dividend of Rs 2 per share.
Godrej Consumer Products is the second largest soap maker in India, and manufactures popular products like Cinthol soap, Good Knight mosquito repellent and Brylcreem hair gel.
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