Godrej Consumer Products : Fragile on (QoQ); Strong on (YoY)

Godrej Consumer Products has announced its quarter ended results. On a (QoQ) basis the results are weak. Net Income from operations posted is down by 4 per cent and stands at Rs 2269.07 crores as compared to 2356.14 crores on a (QoQ) basis. EBITDA margin is down by 3 per cent and stands at Rs 443.56 crores as compared to 458.02 crores on a (QoQ) basis. Net Profit on a (QoQ) basis has seen a decrease of 9 per cent and stands at Rs 309.64 crores against the 340.74 crores for the previous quarter.

On a (YoY) basis the Net Income from operations has increased by 4 per cent. Net Income from operations stands at Rs 8967.81 crores as compared to 8276.36 crores on a (YoY) basis. EBITDA has surged by 9 per cent and stands at Rs 1624 crores as compared to 1368 crores for the previous year. Net profit has also been impressive. Net profit on a (YoY) basis has increased by 23 per cent and stands at Rs 1119.41 crores. On a CAGR basis, the Net Income from Operations has grown by 4 per cent over the period of 3 years. EBITDA margin has also grown by 9 per cent over the period of 3 years.

(QoQ) results have certainly disappointed, but on a (YoY) basis the results have impressed. The shares on the bourses are trading at Rs 1370, down by 0.20 per cent. The correction is largely due to poor (QoQ) results.

Godrej Consumer Products (GCPL) is an Indian Fast Moving Consumer Goods (FMCG) company, with a Household and Personal Care Products' range. The company’s brands include Good Knight, Cinthol, Godrej No. 1, Expert, Hit, Jet, Fairglow, Ezee, Protekt and Snuggy.