Godrej Consumer Products Q3 Results: Profit slumps 28% to Rs 322 crore on slowdown in consumption

Godrej Consumer Products said demand conditions in India have witnessed temporary headwinds over the past few months, led by a slowdown in urban consumption, after it posted a 4% increase in sales with flat volume growth during the December quarter. Net sales rose to Rs 2,237 crore while net profit fell 28% to Rs 322 crore.

"Surge in palm oil prices by more than 40% along with weak seasonality in household insecticides has led to a flat underlying volume growth and mid single digit underlying sales growth for our standalone business. The surge in palm oil costs is negatively impacting our EBITDA margin," said Sudhir Sitapati, MD at GCPL.

The maker of GoodKnight and Cinthol said the EBITDA margin at 22.6% was lower than its normative margin. Personal care grew 2% while home care expanded 4%.


Household Insecticides was impacted by a relatively poor season. Premium formats have been impacted by the urban consumption slowdown, but it gained share among the premium formats. The personal wash volumes declined mid-high single digit, almost compensated by commensurate pricing growth and the company continued to witness significant cost pressures due to inflation in palm derivatives. Significant price hikes were taken across the portfolio, said the company.

The consolidated organic sales grew by 6% year-on-year with net profit decline of 14%.