For
the quarter ending March 2023, consolidated Net sales (including other operating income) of Godrej Consumer Products has increased 9.75% to Rs 3200.16 crore compared to quarter ended Mar 2022. Sales of India segment has gone up 11.47% to Rs 1,822.92 crore (accounting for 56.42% of total sales). Sales of Indonesia segment has gone up 8.20% to Rs 434.54 crore (accounting for 13.45% of total sales). Sales of Africa segment rose 6.55% to Rs 770.09 crore (accounting for 23.83% of total sales). Sales of Others segment has gone down 3.76% to Rs 203.59 crore (accounting for 6.30% of total sales). Inter-segment sales came down from Rs 55.44 crore to Rs 30.97 crore. Profit before interest, tax and other unallocable items (PBIT) has jumped 47.34% to Rs 649.08 crore. PBIT of India segment rose 29.81% to Rs 496.08 crore (accounting for 76.43% of total PBIT). PBIT of Indonesia segment rose 22.59% to Rs 104.73 crore (accounting for 16.14% of total PBIT). PBIT of Africa reported profit of Rs 29.71 crore compared to loss of Rs 46.11 crore. PBIT of Others segment fell 2.57% to Rs 18.56 crore (accounting for 2.86% of total PBIT).
PBIT margin of India segment rose from 23.37% to 27.21%. PBIT margin of Indonesia segment rose from 21.27% to 24.10%. PBIT margin of Africa segment rose from negative 6.38% to 3.86%. PBIT margin of Others segment rose from 9.00% to 9.12%. Overall PBIT margin rose from 14.83% to 20.09%.
Operating profit margin has jumped from 15.88% to 20.03%, leading to 38.40% rise in operating profit to Rs 640.87 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 49.04% to 44.70%. Purchase of finished goods cost fell from 2.49% to 1.59%. Employee cost increased from 9.18% to 9.54%. Other expenses rose from 23.73% to 23.83%. Selling and administration expenses rose from 6.22% to 7.12%. Loss on forex transaction fell from 1.17% to 0.76%. Other income rose 143.73% to Rs 57.91 crore. PBIDT rose 43.54% to Rs 698.78 crore. Provision for interest rose 60.04% to Rs 52.51 crore. Loan funds declined from Rs 1,704.34 crore as of 31 March 2022 to Rs 1,129.58 crore as of 31 March 2023. Inventories declined from Rs 2,129.85 crore as of 31 March 2022 to Rs 1,537.15 crore as of 31 March 2023. Sundry debtors were higher at Rs 1,245.28 crore as of 31 March 2023 compared to Rs 1,116.32 crore as of 31 March 2022. Cash and bank balance declined from Rs 1,107.77 crore as of 31 March 2022 to Rs 390.72 crore as of 31 March 2023. Investments rose to Rs 3,028.98 crore as of 31 March 2023 from Rs 1,015.43 crore as of 31 March 2022 .
PBDT rose 42.34% to Rs 646.27 crore. Provision for depreciation rose 38.57% to Rs 68.59 crore. Fixed assets increased to Rs 4,156.83 crore as of 31 March 2023 from Rs 3,958.95 crore as of 31 March 2022. Intangible assets increased from Rs 5,376.79 crore to Rs 5,822.25 crore.
Profit before tax grew 42.81% to Rs 577.68 crore. Share of profit/loss were nil in both the periods. Extraordinary items were decreased to Rs -22.17 crore. Provision for tax was expense of Rs 103.37 crore, compared to Rs 20.76 crore. Effective tax rate was 18.61% compared to 5.41%.
Minority interest was nil in both the periods. Net profit attributable to owners of the company increased 24.47% to Rs 452.14 crore. Equity capital increased from Rs 102.26 crore as of 31 March 2022 to Rs 102.27 crore as of 31 March 2023. Per share face Value remained same at Rs 1.00.
Promoters’ stake was 63.21% as of 31 March 2023 ,compared to 63.22% as of 31 March 2022 . Promoters pledged stake was 0.66% as of 31 March 2023 ,compared to 0.66% as of 31 March 2022 .
Full year results analysis.
Net sales (including other operating income) of Godrej Consumer Products has increased 8.47% to Rs 13315.97 crore. Sales of India segment has gone up 10.29% to Rs 7,667.16 crore (accounting for 56.99% of total sales). Sales of Indonesia segment has gone down 3.06% to Rs 1,653.03 crore (accounting for 12.29% of total sales). Sales of Africa (including strength of Nature) segment rose 11.97% to Rs 3,414.67 crore (accounting for 25.38% of total sales). Sales of Others segment has gone down 4.39% to Rs 717.83 crore (accounting for 5.34% of total sales). Inter-segment sales came down from Rs 180.76 crore to Rs 136.72 crore. Profit before interest, tax and other unallocable items (PBIT) has jumped 5.16% to Rs 2,410.20 crore. PBIT of India segment rose 11.01% to Rs 1,900.56 crore (accounting for 78.85% of total PBIT). PBIT of Indonesia segment fell 14.10% to Rs 330.75 crore (accounting for 13.72% of total PBIT). PBIT of Africa (including strength of Nature) segment rose 29.52% to Rs 136.88 crore (accounting for 5.68% of total PBIT). PBIT of Others segment fell 52.85% to Rs 42.01 crore (accounting for 1.74% of total PBIT).
PBIT margin of India segment rose from 24.63% to 24.79%. PBIT margin of Indonesia segment fell from 22.58% to 20.01%. PBIT margin of Africa (including strength of Nature) segment rose from 3.47% to 4.01%. PBIT margin of Others segment fell from 11.87% to 5.85%. Overall PBIT margin fell from 18.40% to 17.92%.
Operating profit margin has declined from 19.52% to 18.25%, leading to 1.44% rise in operating profit to Rs 2,430.46 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 46.87% to 47.20%. Purchase of finished goods cost fell from 2.87% to 2.33%. Employee cost decreased from 8.95% to 8.48%. Other expenses rose from 21.89% to 23.44%. Selling and administration expenses rose from 6.09% to 7.52%. Loss on forex transaction rose from 0.78% to 0.83%. Other income rose 87.73% to Rs 168.41 crore. PBIDT rose 4.55% to Rs 2598.87 crore. Provision for interest rose 59.53% to Rs 175.74 crore. Loan funds declined from Rs 1,704.34 crore as of 31 March 2022 to Rs 1,129.58 crore as of 31 March 2023. Inventories declined from Rs 2,129.85 crore as of 31 March 2022 to Rs 1,537.15 crore as of 31 March 2023. Sundry debtors were higher at Rs 1,245.28 crore as of 31 March 2023 compared to Rs 1,116.32 crore as of 31 March 2022. Cash and bank balance declined from Rs 1,107.77 crore as of 31 March 2022 to Rs 390.72 crore as of 31 March 2023. Investments rose to Rs 3,028.98 crore as of 31 March 2023 from Rs 1,015.43 crore as of 31 March 2022 .
PBDT rose 2% to Rs 2423.13 crore. Provision for depreciation rose 12.08% to Rs 236.29 crore. Fixed assets increased to Rs 4,156.83 crore as of 31 March 2023 from Rs 3,958.95 crore as of 31 March 2022. Intangible assets increased from Rs 5,376.79 crore to Rs 5,822.25 crore.
Profit before tax grew 1.02% to Rs 2,186.84 crore. Share of profit/loss were nil in both the periods. Extraordinary items were decreased to Rs -54.11 crore. Provision for tax was expense of Rs 430.27 crore, compared to Rs 371.87 crore. Effective tax rate was 20.17% compared to 17.25%.
Minority interest was nil in both the periods. Net profit attributable to owners of the company decreased 4.54% to Rs 1,702.46 crore.
Equity capital increased from Rs 102.26 crore as of 31 March 2022 to Rs 102.27 crore as of 31 March 2023. Per share face Value remained same at Rs 1.00.
Promoters’ stake was 63.21% as of 31 March 2023 ,compared to 63.22% as of 31 March 2022 . Promoters pledged stake was 0.66% as of 31 March 2023 ,compared to 0.66% as of 31 March 2022 .
Cash flow from operating activities increased to Rs 2,150.65 crore for year ended March 2023 from Rs 1,450.57 crore for year ended March 2022. Cash flow used in acquiring fixed assets during the year ended March 2023 stood at Rs 227.40 crore, compared to Rs 276.52 crore during the year ended March 2022.
Other Highlights
In
Q4 FY23, India business sales grew by 12% year-on-year led by volume growth of
11%. Indonesia sales grew by 8% in INR and 5% in constant currency terms,
year-on-year. Africa, USA and Middle East sales grew by 6% in INR and 8% in
constant currency terms on YoY basis. Latin America & SAARC sales declined
by 3% in INR and grew by 64% in constant currency terms on YoY basis.
In
Q4 FY23, Homecare increased by 14%, personal care up by 17% and Unbranded and
Exports down 33% on YoY basis.