Godrej Consumer Products Q4 profits beat estimates but GCPL stock price struggles

FMCG major Godrej Consumer Products on Friday reported 51.53 per cent increase in its fourth quarter 2018-19 net profit at Rs 935 crore. The company had posted a consolidated net profit of Rs 617.19 crore in the corresponding period last fiscal, GCPL said in a BSE filing.

However, its total revenue from operations during the quarter fell 3.06 per cent to Rs 2,481.72 crore, compared with Rs 2,560.14 crore in the corresponding quarter of the previous fiscal. The company's Q4 2018-19 net profit without exceptions and one-off items increased by 1 per cent to Rs 297 crore.

Consolidated constant currency sales increased by 4 per cent but constant currency EBITDA (earnings before interest, tax, depreciation and amortisation) declined by 3 per cent, said Godrej Consumer Products. India business sales were flat while international business sales grew 10 per cent on a constant currency basis, it said in a statement.

The board of director has declared an interim dividend of 200 per cent (Rs 2 per share). "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 company's Executive Chairperson Nisaba Godrej. "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," he said.