Godrej Consumer Products Ltd (GCPL) shares gained 5% in intra-day trade on Wednesday after the company’s earnings for the second quarter ended September (Q2) met analyst estimates.
Godrej Consumer posted a sharp 28.4% decline in its Q2 consolidated profit at Rs 413.88 crore compared with Rs 577.73 crore a year ago, but the number was in line with market expectations. Revenue during the quarter fell 1.14% to Rs 2,630.2 crore, though domestic volume growth stood at 7% due to new product launches, marketing campaigns and consumer offers.
At 3:07 pm, shares of Godrej Consumer were trading at Rs 743.15, up 3%, after hitting the day’s high of Rs 758. The stock has risen by a tepid 6% in the past one year.
At the operating level, the company’s earnings before interest, tax, depreciation and amortisation (Ebitda) grew 17.5% year-on-year to Rs 571.9 crore during the September quarter, while margins expanded 340 basis points to 21.7%.
Commenting on the Q2 performance, Godrej Consumer’s executive chairperson Nisaba Godrej said: “We delivered a steady performance in the second quarter of fiscal year 2020. Our India business delivered a robust volume growth of 7%, broad based across categories, amidst a general slowdown in staples consumption. We expect a gradual recovery in the coming quarters for the FMCG industry and also for our business.”
Godrej Consumer also announced that its board has declared an interim dividend of Rs 2 per share for 2019-20 and the dividend will be paid on 28 November.
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