The share price of Godrej Consumer rose 5% intraday to Rs 758 on BSE after the company reported net profit which came above estimates for September quarter.
Net profit rose 13% year-on-year to Rs 334.30 crore against Rs 295.2l crore recorded in the corresponding quarter last year. Net sales stood at Rs 1,490.45 crore, up 1% in Q2FY20 against Rs 1,480.70 crore recorded in the same quarter last fiscal. Company's adjusted EBITDA for the Q2FY2020 rose 2% to Rs 392 crore.
Company's volume growth in India also came in-line at 7% this quarter against the 5% growth in Q1FY20, led by new product launches, effective marketing campaigns and consumer offers. This has further resulted in a 4% value growth.
The company has also declared an interim dividend of Rs 2 per share for the financial year 2019-20.
Commenting on the financial performance of 2Q FY 2020, Nisaba Godrej, Executive Chairperson, GCPL said, "Our India business delivered robust volume growth of 7%, broad-based across categories, amidst a general slowdown in staples consumption. We expect a gradual recovery in the coming quarters for the FMCG industry and also for our business."
"In the fiscal year 2020, we expect steady volume growth in India, supported by our continued focus on innovations and enhancements to our go-to-market model," he added.
By Rupa Burman Roy