GCPL Records Marginal Decline In Profit in Q4

Profit after tax stood at INR 363.24 crore for the period under review compared with INR 365.84 in the year-ago period

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FMCG company Godrej Consumer Products Ltd (GCPL) on Thursday reported a marginal decline in its consolidated profit after tax (PAT) for the quarter ended 31 March 2022 . The PAT stood at INR 363.24 crore for the period under review compared with INR 365.84 crore in the year-ago period.

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Consolidated total revenue from operations during the quarter stood at INR 2,915.82 crore compared with INR 2,730.74 crore in the same period a year ago.

"We delivered a weak performance in Q4 FY 2022. Overall sales grew by 7 per cent and our full year sales 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," said Sudhir Sitapati, managing director and CEO of GCPL.

"From a category perspective, we saw a strong performance in personal care, which grew by 18 per cent. Home care delivered a weak performance and declined by 7 per cent. From a geography perspective, India grew at 9 per cent. 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," Sitapati added.

As part of a larger plan for a digitally-led business transformation, GCPL has announced two senior level appointments of Rajesh Sethuraman as chief executive officer of ASEAN and Vijay Kannan as the head of business transformation and digital.

GCPL peer ITC in Q4 recorded an increase of 12 per cent in its consolidated net profit. Similarly, despite inflation, HUL's net profit rose 8 per cent for the quarter ended 31 March, 2022. However, Dabur India's Q4 PAT slipped 22 per cent.