Sales of India segment has gone up 9.47% to Rs 1,838.14 crore (accounting for 57.35% of total sales).  Sales of Indonesia segment has gone down 0.23% to Rs 444.93 crore (accounting for 13.88% of total sales).  Sales of Africa (including strength of Nature) segment rose 14.81% to Rs 748.54 crore (accounting for 23.35% of total sales).  Sales of Others segment has gone down 4.19% to Rs 173.72 crore (accounting for 5.42% of total sales).  Inter-segment sales came down from Rs 43.36 crore to Rs 41.68 crore.  

Profit before interest, tax and other unallocable items (PBIT) has slumped 1.96% to Rs 637.18 crore.  PBIT of India segment fell 3.62% to Rs 448.49 crore (accounting for 70.39% of total PBIT).  PBIT of Indonesia segment rose 4.24% to Rs 114.78 crore (accounting for 18.01% of total PBIT).  PBIT of Africa (including strength of Nature) segment rose 11.43% to Rs 46.21 crore (accounting for 7.25% of total PBIT).  PBIT of Others segment fell 16.04% to Rs 27.70 crore (accounting for 4.35% of total PBIT).  

PBIT margin of India segment fell from 27.71% to 24.40%.  PBIT margin of Indonesia segment rose from 24.69% to 25.80%.  PBIT margin of Africa (including strength of Nature) segment fell from 6.36% to 6.17%.  PBIT margin of Others segment fell from 18.19% to 15.95%.  Overall PBIT margin fell from 21.97% to 19.88%.  

Operating profit margin has declined from 23.08% to 20.85%, leading to 1.97% decline in operating profit to Rs 659.59 crore.  Raw material cost as a % of total sales (net of stock adjustments) increased from 42.96% to 46.18%.   Purchase of finished goods cost rose from 3.20% to 3.28%.   Employee cost decreased from 8.80% to 8.27%.   Other expenses fell from 22.84% to 21.12%.   Selling and administration expenses fell from 6.88% to 6.09%.   Loss on forex transaction rose from 0.38% to 0.63%.   

Other income rose 62.41% to Rs 22.64 crore.  PBIDT fell 0.66% to Rs 682.23 crore.  Provision for interest fell 21.79% to Rs 24.51 crore.  Loan funds rose to Rs 2,223.61 crore as of 30 September 2021 from Rs 1,280.18 crore as of 30 September 2020.  Inventories rose to Rs 1,968.69 crore as of 30 September 2021 from Rs 1,640.47 crore as of 30 September 2020.  Sundry debtors were lower at Rs 1,043.75 crore as of 30 September 2021 compared to Rs 1,051.26 crore as of 30 September 2020.  Cash and bank balance rose to Rs 832.51 crore as of 30 September 2021 from Rs 456.65 crore as of 30 September 2020.  Investments rose to Rs 1,013.10 crore as of 30 September 2021 from Rs 475.91 crore as of 30 September 2020 .  

PBDT rose 0.35% to Rs 657.72 crore.  Provision for depreciation fell 0.12% to Rs 50.88 crore.  Fixed assets increased to Rs 1,387.28 crore as of 30 September 2021 from Rs 1,333.82 crore as of 30 September 2020.  Intangible assets declined from Rs 7,794.91 crore to Rs 7,740.51 crore.  

Profit before tax grew 0.39% to Rs 606.84 crore.  Share of profit/loss was 40% higher at Rs 0.21 crore.  Extraordinary items were decreased to Rs -1.44 crore.  Provision for tax was expense of Rs 126.72 crore, compared to Rs 146.3 crore.  Effective tax rate was 20.92% compared to 24.21%.

Minority interest was nil in both the periods.  Net profit attributable to owners of the company increased 4.56% to Rs 478.89 crore.  

Equity capital increased from Rs 102.25 crore as of 30 September 2020 to Rs 102.26 crore as of 30 September 2021.  Per share face Value remained same at Rs 1.00.  

Promoters' stake was 63.22% as of 30 September 2021 ,compared to 63.23% as of 30 September 2020 .  Promoters pledged stake was 0.66% as of 30 September 2021 ,compared to 0.66% as of 30 September 2020 .  

For year-to-date (YTD) results analysis.

Net sales (including other operating income) of Godrej Consumer Products has increased 15.56% to Rs 6058.1 crore.  Sales of India segment has gone up 14.35% to Rs 3,498.79 crore (accounting for 57.03% of total sales).  Sales of Indonesia segment has gone up 0.56% to Rs 856.40 crore (accounting for 13.96% of total sales).  Sales of Africa segment rose 32.45% to Rs 1,442.77 crore (accounting for 23.52% of total sales).  Sales of Others segment has gone up 9.19% to Rs 336.96 crore (accounting for 5.49% of total sales).  Inter-segment sales rose Rs 66.93 crore to Rs 76.82 crore.  

Profit before interest, tax and other unallocable items (PBIT) has jumped 9.11% to Rs 1,210.99 crore.  PBIT of India segment rose 3.80% to Rs 875.57 crore (accounting for 72.30% of total PBIT).  PBIT of Indonesia segment fell 0.33% to Rs 207.77 crore (accounting for 17.16% of total PBIT).  PBIT of Africa segment rose 551.12% to Rs 78.59 crore (accounting for 6.49% of total PBIT).  PBIT of Others segment rose 7.09% to Rs 49.06 crore (accounting for 4.05% of total PBIT).  

PBIT margin of India segment fell from 27.57% to 25.02%.  PBIT margin of Indonesia segment fell from 24.48% to 24.26%.  PBIT margin of Africa segment rose from 1.11% to 5.45%.  PBIT margin of Others segment fell from 14.84% to 14.56%.  Overall PBIT margin fell from 20.90% to 19.74%.  

Operating profit margin has declined from 21.86% to 20.79%, leading to 9.93% rise in operating profit to Rs 1,259.55 crore.  Raw material cost as a % of total sales (net of stock adjustments) increased from 41.34% to 46.90%.   Purchase of finished goods cost fell from 3.66% to 3.11%.   Employee cost decreased from 10.04% to 8.88%.   Other expenses fell from 23.19% to 20.70%.   Selling and administration expenses fell from 5.95% to 5.46%.   Loss on forex transaction rose from 0.22% to 0.50%.   

Other income rose 22.75% to Rs 43.54 crore.  PBIDT rose 10.31% to Rs 1303.09 crore.  Provision for interest fell 34.99% to Rs 51.8 crore.  Loan funds rose to Rs 2,223.61 crore as of 30 September 2021 from Rs 1,280.18 crore as of 30 September 2020.  Inventories rose to Rs 1,968.69 crore as of 30 September 2021 from Rs 1,640.47 crore as of 30 September 2020.  Sundry debtors were lower at Rs 1,043.75 crore as of 30 September 2021 compared to Rs 1,051.26 crore as of 30 September 2020.  Cash and bank balance rose to Rs 832.51 crore as of 30 September 2021 from Rs 456.65 crore as of 30 September 2020.  Investments rose to Rs 1,013.10 crore as of 30 September 2021 from Rs 475.91 crore as of 30 September 2020 .  

PBDT rose 13.59% to Rs 1251.29 crore.  Provision for depreciation rose 1.47% to Rs 101.75 crore.  Fixed assets increased to Rs 1,387.28 crore as of 30 September 2021 from Rs 1,333.82 crore as of 30 September 2020.  Intangible assets declined from Rs 7,794.91 crore to Rs 7,740.51 crore.  

Profit before tax grew 14.80% to Rs 1,149.54 crore.  Share of profit/loss was 82.61% higher at Rs -0.04 crore.  Provision for tax was expense of Rs 253.96 crore, compared to Rs 161.02 crore.  Effective tax rate was 22.15% compared to 15.88%.

Minority interest was nil in both the periods.  Net profit attributable to owners of the company increased 4.65% to Rs 892.55 crore.  

Equity capital increased from Rs 102.25 crore as of 30 September 2020 to Rs 102.26 crore as of 30 September 2021.  Per share face Value remained same at Rs 1.00.  

Promoters' stake was 63.22% as of 30 September 2021 ,compared to 63.23% as of 30 September 2020 .  Promoters pledged stake was 0.66% as of 30 September 2021 ,compared to 0.66% as of 30 September 2020 .  

Cash flow from operating activities decreased to Rs 452.45 crore for YTD ended September 2021 from Rs 1,188.27 crore for YTD ended September 2020.  Cash flow used in acquiring fixed assets during the YTD ended September 2021 stood at Rs 96.42 crore, compared to Rs 62.54 crore during the YTD ended September 2020.  

Full year results analysis.

Net sales (including other operating income) of Godrej Consumer Products has increased 11.28% to Rs 11028.62 crore.  Sales of India segment has gone up 14.25% to Rs 6,254.33 crore (accounting for 55.90% of total sales).  Sales of Indonesia segment has gone up 4.37% to Rs 1,770.02 crore (accounting for 15.82% of total sales).  Sales of Africa (including strength of Nature) segment rose 7.87% to Rs 2,498.53 crore (accounting for 22.33% of total sales).  Sales of Others segment has gone up 19.86% to Rs 665.93 crore (accounting for 5.95% of total sales).  Inter-segment sales rose Rs 131.31 crore to Rs 160.19 crore.  

Profit before interest, tax and other unallocable items (PBIT) has jumped 9.42% to Rs 2,293.14 crore.  PBIT of India segment rose 12.11% to Rs 1,634.12 crore (accounting for 71.26% of total PBIT).  PBIT of Indonesia segment rose 4.52% to Rs 480.92 crore (accounting for 20.97% of total PBIT).  PBIT of Africa (including strength of Nature) segment fell 37.03% to Rs 106.52 crore (accounting for 4.65% of total PBIT).  PBIT of Others segment rose 702.47% to Rs 71.58 crore (accounting for 3.12% of total PBIT).  

PBIT margin of India segment fell from 26.63% to 26.13%.  PBIT margin of Indonesia segment rose from 27.13% to 27.17%.  PBIT margin of Africa (including strength of Nature) segment fell from 7.30% to 4.26%.  PBIT margin of Others segment rose from 1.61% to 10.75%.  Overall PBIT margin fell from 20.87% to 20.49%.  

Operating profit margin has jumped from 21.62% to 21.66%, leading to 11.44% rise in operating profit to Rs 2,388.25 crore.  Raw material cost as a % of total sales (net of stock adjustments) increased from 40.87% to 41.61%.   Purchase of finished goods cost rose from 3.10% to 3.30%.   Employee cost increased from 10.10% to 10.15%.   Other expenses fell from 24.67% to 23.37%.   Selling and administration expenses fell from 7.33% to 6.62%.   

Other income fell 40.28% to Rs 67.07 crore.  PBIDT rose 8.87% to Rs 2455.32 crore.  Provision for interest fell 41.76% to Rs 126.63 crore.  Loan funds declined from Rs 2,720.36 crore as of 31 March 2020 to Rs 1,863.97 crore as of 31 March 2021.  Inventories rose to Rs 1,716.25 crore as of 31 March 2021 from Rs 1,703.12 crore as of 31 March 2020.  Sundry debtors were lower at Rs 1,004.50 crore as of 31 March 2021 compared to Rs 1,157.25 crore as of 31 March 2020.  Cash and bank balance declined from Rs 770.16 crore as of 31 March 2020 to Rs 672.21 crore as of 31 March 2021.  Investments rose to Rs 679.10 crore as of 31 March 2021 from Rs 671.98 crore as of 31 March 2020 .  

PBDT rose 14.27% to Rs 2328.69 crore.  Provision for depreciation rose 3.33% to Rs 203.85 crore.  Fixed assets declined from Rs 3,949.12 crore as of 31 March 2020 to Rs 3,832.35 crore as of 31 March 2021.  Intangible assets declined from Rs 5,339.32 crore to Rs 5,129.85 crore.  

Profit before tax grew 15.44% to Rs 2,124.84 crore.  Extraordinary items were increased to Rs -44.47 crore.  Provision for tax was expense of Rs 359.54 crore, compared to Rs 263.82 crore.  Effective tax rate was 17.28% compared to 14.99%.

Minority interest was nil in both the periods.  Net profit attributable to owners of the company increased 14.98% to Rs 1,720.82 crore.  

Equity capital increased from Rs 102.23 crore as of 31 March 2020 to Rs 102.25 crore as of 31 March 2021.  Per share face Value remained same at Rs 1.00.  

Promoters' stake was 63.23% as of 31 March 2021 ,compared to 63.24% as of 31 March 2020 .  Promoters pledged stake was 0.66% as of 31 March 2021 ,compared to 0.66% as of 31 March 2020 .  

Cash flow from operating activities increased to Rs 2,029.63 crore for year ended March 2021 from Rs 1,588.11 crore for year ended March 2020.  Cash flow used in acquiring fixed assets during the year ended March 2021 stood at Rs 163.86 crore, compared to Rs 152.02 crore during the year ended March 2020.  

Other Highlights

In Q2 FY22, Homecare delivered growth of 5% and personal care 10% on YoY basis.

In Q2 FY22,(1) Indonesia sales declined 2% and (2) Africa, USA & Middle East grew 16% on YoY basis.

Company Continues to strengthen E-commerce. It now contributes 4% of total branded sales.

Management commentary: Nisaba Godrej, Executive Chairperson, GCPL, said: We have delivered steady sales growth. Consolidated sales grew by 9% and EBITDA declined by 1%. We continued our growth momentum and delivered another quarter of double-digit 2-year CAGR of 10%. We saw steady sales growth in the Home Care and Personal Care categories. Home Care grew by 5% and Personal Care continued its strong momentum, growing by 10%. The sub-categories within Home Care and Personal Care saw broad based growth. From a geography perspective, India grew at 10%. Our Africa, USA and Middle East business continued its robust growth trajectory, growing at 15% in INR and 16% in constant currency terms. Our Indonesian business saw flat growth in INR while it declined by 2% in constant currency terms. Going forward, we will continue to focus our efforts where the demand is in Home Care and Personal Care - in Household Insecticides, Personal Wash & Hygiene, and Hair Care. We remain focused on expanding our Total Addressable Market. We have a robust pipeline of consumer-centric innovations and are building out full portfolios across price points. To support this, we are strengthening our supply chain operations and ramping up new capabilities and channels in digital, e-commerce and chemists. We remain confident of leveraging growth opportunities to drive sustainable sales growth across our portfolio in fiscal year 2022. I am very excited that Sudhir Sitapati has taken over as Managing Director and Chief Executive Officer of GCPL and I look forward to the leadership and growth he will bring along with our wonderful GCPL team. We continue to do our best to truly live The Godrej Way and serve our people and communities.