Godrej Consumer Products Ltd (GCPL) shares were locked in at a 20 percent upper price band in early trade on Wednesday after the consumer major reported a sharp 59 percent jump in March quarter net profit.

Share Market Live

NSE

The stock price hit a 52-week high of Rs 859.10 apiece on the BSE after surging 20 percent.

The FMCG major posted a consolidated net profit of Rs 365.84 crore for the fourth quarter of fiscal 2021, registering a 59.13 percent growth over Rs 229.90 crore in the year-ago quarter.

The company’s consolidated revenue from operation during Q4FY21 rose 26.8 percent to Rs 2,730.74 crore from Rs 2,153.80 crore in the year-ago period.

“We delivered a third consecutive quarter of double-digit sales growth. Consolidated sales grew 27 percent and Ebitda (earnings before interest, tax, depreciation and amortisation) grew by 21 percent,” said Nisaba Godrej, Chairperson and Managing Director, GCPL.

GCPL’s India revenue was up 34.63 percent to Rs 1,499.74 crore in the January-March 2021 quarter, against Rs 1,113.94 crore a year ago. The company reported a volume growth of 29 percent in India during the quarter under review.

Revenue from the Indonesian market was up 4.84 percent to Rs 471.13 crore, compared with Rs 449.36 crore a year ago.

While GCPL’s revenue from the Africa market, including that of Strength of Nature, was up 30.23 percent at Rs 630.37 crore as against Rs 484.03 crore a year ago.

“Our Africa, USA and Middle East business continued its robust growth trajectory, growing at 30 percent in the Indian rupee and 36 per cent in constant currency terms. Our Indonesian business delivered growth of 5 per cent in the Indian rupee and 4 percent in constant currency terms, on a positive growth base,” said Godrej.

Revenue from other markets was also up 31.49 percent to Rs 178.70 crore in January-March 2021, against Rs 135.90 crore.

“From a category perspective, we saw continued strong growth momentum in the ‘household insecticides’ and ‘hygiene’ categories. Hygiene grew 38 percent, ‘household insecticides’ rose 28 percent, and ‘value for money’ products grew by 27 percent,” Godrej added.

“We will continue to carefully navigate the challenges of the second wave of COVID-19 in India by ensuring seamless supply chain deliveries, and closely tracking shifts in consumer behaviour to respond to,” she added.

The company’s board appointed Hindustan Unilever’s former executive director Sudhir Sitapati as the managing director and CEO.

Global brokerage firm CLSA said that Godrej Consumer’s top-line performance for 4QFY21 stood in-line with the company’s business update.

“With the appointment of Sudhir Sitapati (after 22 years with Unilever) effective 18 October 2021, the company has strengthened its leadership and is addressing execution concerns,” CLSA said.

Catch all the latest updates from the stock market here.

(Edited by : Ajay Vaishnav)