Godrej Industries Q2 net profit dips by 17.56 per cent

NEW DELHI: Godrej Industries today posted a 17.56 per cent fall in the consolidated net profit at Rs 76.52 crore during the quarter ended September 30, mainly due to increase in tax expenses.

The company had clocked a net profit of Rs 92.82 crore in the same period corresponding year, it said in a BSE filing.

Godrej Industries, however, said that the figures are "not strictly comparable with those of the previous period," in view of change in the company's shareholdings in the some of subsidiaries, JVs and associates.

The net profit for the second quarter took a beating mainly because tax expenses rose to Rs 36.71 crore from Rs 26.62 crore in the year-ago period. Besides, income from exceptional items remained slighly lower at Rs 35.04 crore as against Rs 45.99 crore in the review period.

"During the quarter, the Group has sold entire holding in M' Modal Inc, and also in its joint venture company Godrej Hersheys ltd. The profit and loss of these investments is included in exceptional items," the company said.

However, net sales increased to Rs 1,946.12 crore during the second quarter of the current fiscal from Rs 1,391.34 crore in the same period last year.

"We have performed well in most of our core businesses despite a challenging macro-economic environment. Our agri businesses have been growing at an impressive rate with oil palm, animal feed and agri inputs segments doing well in the quarter," Godrej Industries Chairman A B Godrej said.

Highlighting the performance of business divisions, Godrej Industries said the revenue from vegetable oil business rose to Rs 592.28 crore during the second quarter of the 2012-13 fiscal from Rs 308.97 crore in the year-ago period.

Similarly, revenue from real estate rose to Rs 252.80 crore from Rs 150.56 crore, while income from animal feed business jumped to Rs 628.24 crore from Rs 404.98 crore on in the review period.

Chemicals business grew marginally to Rs 346.59 crore during the second quarter of this fiscal due to raw material price fluctuation and a difficult global economic environment, the release said.

The revenue from beverages however remained lower at Rs 34.37 crore during the quarter ended September 30 from Rs 39.88 crore in the same period last year, it added.

The products manufactured by the Godrej Industries, a member of the Godrej Group, are exported to 40 countries.

Share of the company rose marginally to settle at Rs 319.6 on the BSE today.