Godrej Consumer Q4 PAT slides 75% to Rs 230 cr

On a consolidated basis, Godrej Consumer Products reported a 75.42% drop in net profit to Rs 229.90 crore on a 12.2% drop in net sales to Rs 2132.69 crore in Q4 March 2020 over Q4 March 2019.

May 14, 2020 09:05 IST capital market

Consolidated profit before tax (PBT) fell 32.54% to Rs 337.30 crore in Q4 March 2020 over Q4 March 2019. Consolidated business EBITDA declined 18% year on year (YoY) in Q4 March 2020 while consolidated constant currency EBITDA declined by 15% year-on-year in the same period. The company said consolidated EBIDTA margins declined to 22.3%.

The company said it has temporarily deferred its outlook for FY21 driven by progression of COVID-19 and related uncertainties. The company said complete pause on sales due to disruption of both back end and front end supply chain took a hit.

Commenting on companys financial performance, Nisaba Godrej, Executive Chairperson, said During this quarter, we had witnessed steady demand in our categories till mid-March 2020. However, the spread of the virus and the eventual lockdown in many geographies of our operations resulted in virtually no sales in the later part of March 2020, significantly impacting our sales performance in the quarter. This resulted in a weak performance in our India business, although we have continued to gain market shares across categories.

In our international businesses, Indonesia continued its strong growth momentum with mid-single digit profitable constant currency sales growth inspite of the COVID-19 crisis, driven by a consistent performance across categories and several go-to-market initiatives. In GAUM (Godrej Africa, USA, Middle East), we witnessed a weak sales performance amidst disruptions caused by COVID-19 in many of our countries of operations. Going forward, we are ramping up our supply chain operations and distribution, in line with the prescribed safety measures and easing of lockdowns in various countries. Since the situation is very dynamic, our teams are continuing to manage our business prudently, while assessing various scenarios for business recovery. We will continue to focus on driving our market share and launch relevant innovations to enhance our competitiveness. The situation calls for an extraordinary level of adaptability, resilience and agility - and our teams are well-geared to embrace this challenge.?

The company reported household insecticides segment declined by 16% due to loss of sales in the later part of March 2020, which marks the onset of high mosquito infestation in North India. Soaps segment declined by 23% due to loss of sales in the last fortnight of March 2020 owing to the impact of the COVID-19 outbreak. The season is usually a high growth period with the onset of the summer season. Hair Colours segment delivered a weak performance on the back of general slowdown in the Hair Colour category due its discretionary nature and consumers stretching their consumption.

Shares of Godrej Consumer Products were up 2.43% at Rs 547.55 on BSE. The scrip has traded in the range of Rs 519 and Rs 553 so far during the day.

Godrej Consumer Products is an Indian consumer goods company. The companys products include soap, hair colourants, toiletries and liquid detergents.

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