Consolidated constant currency sales increased 8% on a like to like basis.

- India business sales grew 10%

- International business sales grew 6%, on a constant currency basis

OPM fell 290 basis points to 18.3% which took OP down 8% to Rs 486.83 crore.

Other income jumped 37% to Rs 26 crore and interest was up 52% to Rs 61.22 crore. As depreciation rose 10% to Rs 42.57 crore, PBT fell 13% to Rs 409.04 crore.

EO gains stood at Rs 259.72 crore against a loss of Rs 4.42 crore and share of profit/loss of associate companies fell 69% to Rs 11 lakh. Thus PBT after EO grew 43% to Rs 668.87 crore.

Provision for tax fell 14% to Rs 91.14 crore. Thus, consolidated net profit grew 60% to Rs 577.73 crore.

Six months 2018 consolidated performance

For the six months sales grew 10% to Rs 51335.20 crore

OPM fell 70 basis points to 18.1% which took OP up 6% to Rs 930.99 crore.

Other income jumped 34% to Rs 56.95 crore and interest was up 36% to Rs 108.95 crore. As depreciation rose 12% to Rs 84.70 crore, PBT grew 3% to Rs 794.29 crore.

EO gains stood at Rs 253.30 crore against a loss of Rs 11.94 crore and share of profit/loss of associate companies fell 28% to Rs 34 lakh. Thus PBT after EO grew 39% to Rs 1047.93 crore.

Provision for tax fell 62% to Rs 65.16 crore. Thus, net profit grew 67% to Rs 982.77 crore.

During the six months, there has been sale of certain brands within the Group's entities that shall derive benefits of future tax deductions for the Group. Consequently, a deferred tax asset amounting to Rs 96.35 crores has been recognized in the Consolidated Financial Results.

Commenting on the financial performance of 2Q FY 2019, Nisaba Godrej, Executive Chairperson, GCPL, said: "We had a mixed performance in the second quarter of fiscal year 2019. Our India business delivered double-digit sales growth and strong profit growth, while stepping up our investments in marketing. In our international business, Indonesia continued its strong recovery, while Africa and Latin America recorded relatively weaker performances due to adverse macroeconomic conditions.

During the quarter, we accelerated our innovation momentum across geographies, with multiple launches, including a disruptive powder-to-liquid hand wash and comprehensive male grooming range in India, an innovative mosquito repellent in Indonesia, multiple wet hair care brands in Sub-Saharan Africa and the US, and a major re-launch of our Darling brand in Nigeria. We continue to make healthy brand investments for sustainable future growth. With the scale up of these new launches and recovery in consumer demand, we expect to deliver much improved, profitable growth in the second half of this fiscal year.

Overall, we remain relentlessly focused on becoming more agile, increasing the pace of innovations, enhancing our go-to-market approach and investing in our key talent, to continue to outperform the market and deliver industry-leading returns."

India business

India sales increased 10% to Rs 1481 crore.

Household Insecticides delivered a soft quarter. Sales declined by 2% as uneven distribution and deficient rainfall impacted demand, especially in South India and East India which account for around 60% of sales. New launches continue to scale up well. It continuse to focus on mass market innovation and trial generation SKUs to drive category penetration and make effective brand investments for future growth.

Soaps delivered double-digit volume led sales growth of 11%. This performance was led by effective micro-marketing initiatives, a focus on new states and strong on-ground execution. It has continued to gain market share during the quarter.

Hair Colours continues to gain momentum and delivered double-digit volume led sales growth of 21%. Godrej Expert Rich Crème continues to consistently deliver robust growth and has achieved the highest ever market share on an exit basis. We continue to focus on activations and effective media campaigns to recruit new consumers into the category. The recently launched Godrej Nupur Herbal Based Powder hair colour is being rolled out in the market.

Indonesia business sustained a robust growth momentum and delivered constant currency sales growth of 14%. This was driven by new product launches and effective sales promotion investments, which enabled ahead of market growth. The company maintained market leadership position in Household Insecticides and continued to gain market share on a year-on-year basis for the quarter. During the quarter, it launched HIT Expert Long Lasting Magic Paper to up trade coil consumers.

GAUM (Africa, USA and Middle East)

GAUM cluster had a relatively soft quarter with a constant currency sales growth of 4%. Sales in the quarter was impacted by weakness in South Africa. The West cluster continued to deliver strong growth and the East cluster is showing early signs of recovery. Business excluding the South grew in high single-digits, in constant currency terms. During the quarter, it relaunched the Darling brand in Nigeria

Valuation

The stock trades at Rs 315.