Godrej Consumer Reports 14% Drop in Q3 Profit; Declares Interim Dividend
Godrej Consumer Products Limited (GCPL) reported a 14% decline in net profit for the October-December quarter (Q3) of FY25, amounting to Rs 498.31 crore compared to Rs 581.06 crore in Q3 FY24.
Mumbai: Godrej Consumer Products Limited (GCPL) reported a 14% decline in net profit for the October-December quarter (Q3) of FY25, amounting to Rs 498.31 crore compared to Rs 581.06 crore in Q3 FY24.
Table of Contents
Revenue Growth Despite Profit Decline
Despite the dip in profit, GCPL’s revenue from operations rose by 3%, reaching Rs 3,768.43 crore, up from Rs 3,659.64 crore in the same period last year. The company’s total income also grew by 3.3% to Rs 3,851.53 crore, compared to Rs 3,729.72 crore in Q3 FY24, according to its regulatory filing.
EBITDA Margin Decline
GCPL faced profitability challenges due to a 290-basis-point drop in EBITDA margin, which now stands at approximately 20%.
Interim Dividend Announcement
The company declared an interim dividend of Rs 5 per share. The record date for determining eligible shareholders is February 3, 2025, and the dividend payout is scheduled on or before February 23, 2025.
CEO Comments on Market Conditions
Sudhir Sitapati, MD and CEO of GCPL, highlighted temporary headwinds in demand across India, citing:
- A slowdown in urban consumption.
- A 40% surge in palm oil prices, impacting margins.
- Weak seasonality for household insecticides.
However, categories like air fresheners and laundry liquids showed strong double-digit volume growth, balancing the decline in other segments.
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Organic Sales and Segment Performance
GCPL’s organic sales grew by 6% year-on-year, with the standalone business seeing a 4% increase in sales, though volumes remained flat compared to the previous year.
Stock Performance
On the BSE, GCPL shares closed at Rs 1,128.60, marking a 1.4% decline on Friday. The stock is currently trading 27% below its 52-week high of Rs 1,541.30.
Key Takeaways
- Net profit fell 14% YoY to Rs 498.31 crore in Q3 FY25.
- Revenue from operations increased by 3% to Rs 3,768.43 crore.
- Interim dividend of Rs 5 per share announced.
- Challenges include rising raw material costs and a sluggish urban market.
- Certain categories continued to deliver double-digit growth, showing resilience.
Stay updated for more on GCPL’s financial performance and market trends.
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