For the
quarter ending March 2022, consolidated net sales (including other operating income) of Godrej Consumer Products has increased 6.78% to Rs 2915.82 crore compared to quarter ended march 2021.
Operating profit margin has declined from 20.10% to 16.04%, leading to 14.83% decline in operating profit to Rs 467.58 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 43.53% to 49.04%. Purchase of finished goods cost rose from 2.18% to 2.49%. Employee cost decreased from 11.00% to 9.18%. Other expenses fell from 23.71% to 23.58%. Selling and administration expenses fell from 6.81% to 6.22%. Other income rose 43.39% to Rs 23.76 crore. PBIDT fell 13.12% to Rs 491.34 crore. Provision for interest rose 43.28% to Rs 32.81 crore. Loan funds declined from Rs 1,863.97 crore as of 31 March 2021 to Rs 1,704.34 crore as of 31 March 2022. Inventories rose to Rs 2,129.85 crore as of 31 March 2022 from Rs 1,716.25 crore as of 31 March 2021. Sundry debtors were higher at Rs 1,116.32 crore as of 31 March 2022 compared to Rs 1,004.50 crore as of 31 March 2021. Cash and bank balance rose to Rs 1,107.77 crore as of 31 March 2022 from Rs 672.21 crore as of 31 March 2021. Investments rose to Rs 1,015.43 crore as of 31 March 2022 from Rs 679.10 crore as of 31 March 2021 . PBDT fell 15.50% to Rs 458.53 crore. Provision for depreciation fell 0.86% to Rs 54.01 crore. Fixed assets increased to Rs 3,958.95 crore as of 31 March 2022 from Rs 3,832.35 crore as of 31 March 2021. Intangible assets increased from Rs 5,129.85 crore to Rs 5,376.79 crore. Profit before tax down 17.14% to Rs 404.52 crore. Share of profit/loss was 75% lower at Rs 0.01 crore. Extraordinary items were increased to Rs -20.53 crore. Provision for tax was expense of Rs 20.76 crore, compared to Rs 58.57 crore. Effective tax rate was 5.41% compared to 13.80%. Minority interest was nil in both the periods. Net profit attributable to owners of the company decreased 0.71% to Rs 363.24 crore. Equity capital increased from Rs 102.25 crore as of 31 March 2021 to Rs 102.26 crore as of 31 March 2022. Per share face Value remained same at Rs 1.00. Promoters’ stake was 63.22% as of 31 March 2022 ,compared to 63.23% as of 31 March 2021 . Promoters pledged stake was 0.66% as of 31 March 2022 ,compared to 0.66% as of 31 March 2021 .
Full year results analysis.
Net sales (including other operating income) of Godrej Consumer Products has increased 11.31% to Rs 12276.5 crore. Operating profit margin has declined from 21.66% to 19.51%, leading to 0.29% rise in operating profit to Rs 2,395.11 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 41.61% to 46.87%. Purchase of finished goods cost fell from 3.30% to 2.87%. Employee cost decreased from 10.15% to 8.95%. Other expenses fell from 23.37% to 21.90%. Selling and administration expenses fell from 6.62% to 6.09%. Other income rose 33.76% to Rs 89.71 crore. PBIDT rose 1.20% to Rs 2484.82 crore. Provision for interest fell 13.01% to Rs 110.16 crore. Loan funds declined from Rs 1,863.97 crore as of 31 March 2021 to Rs 1,704.34 crore as of 31 March 2022. Inventories rose to Rs 2,129.85 crore as of 31 March 2022 from Rs 1,716.25 crore as of 31 March 2021. Sundry debtors were higher at Rs 1,116.32 crore as of 31 March 2022 compared to Rs 1,004.50 crore as of 31 March 2021. Cash and bank balance rose to Rs 1,107.77 crore as of 31 March 2022 from Rs 672.21 crore as of 31 March 2021. Investments rose to Rs 1,015.43 crore as of 31 March 2022 from Rs 679.10 crore as of 31 March 2021 . PBDT rose 1.97% to Rs 2374.66 crore. Provision for depreciation rose 2.98% to Rs 209.93 crore. Fixed assets increased to Rs 3,958.95 crore as of 31 March 2022 from Rs 3,832.35 crore as of 31 March 2021. Intangible assets increased from Rs 5,129.85 crore to Rs 5,376.79 crore. Profit before tax grew 1.88% to Rs 2,164.73 crore. Extraordinary items were increased to Rs -9.75 crore. Provision for tax was expense of Rs 371.87 crore, compared to Rs 359.54 crore. Effective tax rate was 17.25% compared to 17.28%. Minority interest was nil in both the periods. Net profit attributable to owners of the company increased 3.64% to Rs 1,783.39 crore. Equity capital increased from Rs 102.25 crore as of 31 March 2021 to Rs 102.26 crore as of 31 March 2022. Per share face Value remained same at Rs 1.00. Promoters’ stake was 63.22% as of 31 March 2022 ,compared to 63.23% as of 31 March 2021 . Promoters pledged stake was 0.66% as of 31 March 2022 ,compared to 0.66% as of 31 March 2021 .
Other Highlights
In Q4 FY22,
Homecare declined by 7% and personal care up by 18% on YoY basis.
During the
quarter India sales grew by 9% on YoY basis.
In Q4
FY22,(1) Indonesia sales declined 16% in Constant Currency terms, (2) Africa, USA & Middle
East grew 14% and (3) Latin America & SAARC grew by 26% on YoY basis.
In FY22,(1)
Indonesia sales declined 5% in Constant Currency terms, (2) Africa, USA & Middle East grew 22% and
(3) Latin America & SAARC grew by 24% on YoY basis.
Management Comments :
Sudhir Sitapati, Managing Director and CEO, GCPL, said: We
delivered a weak performance in 4Q FY 2022. Overall sales grew by 7% and our
full yearsales grew in double-digits. However, this growth was driven by
pricing. We continue to believe that with the relatively non-discretionary,
mass pricing of our portfolio and very good performance on market shares,
volume growth will return in the medium term. Our overall EBITDA declined by 9%
(without one-offs) driven by unprecedented global commodity inflation and scale
deleverage in Indonesia. PAT without exceptional items and one-offs declined by
4%. From a category perspective, we saw a strong performance in Personal Care,
which grew by 18%. Home Care delivered a weak performance and declined by 7%.
From a geography perspective, India grew at 9%. Our Africa, USA and Middle East
business continued its robust growth trajectory, growing at 15% in INR and 14%
in constant currency terms. Performance in our Indonesian business was weak,
declining by 15% in INR and 16% in constant currency terms. We continue to have
a healthy balance sheet and our net debt to equity ratio continues to come
down. We are on a journey to reduce inventory and wasted cost and are deploying
this to drive profitable and sustainable volume growth across our portfolio
through category development. We remain committed to our purpose of bringing
the goodness of health and beauty to consumers in emerging markets. We were
recently ranked amongst BW Businessworld’s list of India’s top 10 sustainable
companies for the second year in a row.
| Godrej Consumer Products : Consolidated Results | | | Quarter ended | Year ended |
|---|
| Particulars | 202203 | 202103 | Var.(%) | 202203 | 202103 | Var.(%) |
|---|
| Net Sales (including other operating income) | 2,915.82 | 2,730.74 | 6.78 | 12,276.50 | 11,028.62 | 11.31 | | OPM (%) | 16.04 | 20.10 | -407 bps | 19.51 | 21.66 | -215 bps | | OP | 467.58 | 549.00 | -14.83 | 2,395.11 | 2,388.25 | 0.29 | | Other Inc. | 23.76 | 16.57 | 43.39 | 89.71 | 67.07 | 33.76 | | PBIDT | 491.34 | 565.57 | -13.12 | 2,484.82 | 2,455.32 | 1.20 | | Interest | 32.81 | 22.90 | 43.28 | 110.16 | 126.63 | -13.01 | | PBDT | 458.53 | 542.67 | -15.50 | 2,374.66 | 2,328.69 | 1.97 | | Depreciation | 54.01 | 54.48 | -0.86 | 209.93 | 203.85 | 2.98 | | PBT | 404.52 | 488.19 | -17.14 | 2164.73 | 2124.84 | 1.88 | | Share of Profit/(Loss) from Associates | 0.01 | 0.04 | -75.00 | 0.28 | -0.01 | LP | | PBT before EO | 404.53 | 488.23 | -17.14 | 2165.01 | 2124.83 | 1.89 | | EO Income | -20.53 | -63.82 | 67.83 | -9.75 | -44.47 | 78.08 | | PBT after EO | 384 | 424.41 | -9.52 | 2155.26 | 2080.36 | 3.60 | | Taxation | 20.76 | 58.57 | -64.56 | 371.87 | 359.54 | 3.43 | | PAT | 363.24 | 365.84 | -0.71 | 1783.39 | 1720.82 | 3.64 | | Minority Interest (MI) | 0 | 0 | - | 0 | 0 | - | | Net profit | 363.24 | 365.84 | -0.71 | 1783.39 | 1720.82 | 3.64 | | P/(L) from discontinued operations net of tax | 0 | 0 | - | 0 | 0 | - | | Net profit after discontinued operations | 363.24 | 365.84 | -0.71 | 1783.39 | 1720.82 | 3.64 | | EPS (Rs)* | 3.74 | 4.12 | -9.07 | 17.52 | 17.19 | 1.93 | | | * EPS is on current equity of Rs 102.26 crore, Face value of Rs 1, Excluding extraordinary items. | | # EPS is not annualised | | bps : Basis points | | EO : Extraordinary items | | Figures in Rs crore | | Source: Capitaline Corporate Database |
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