GCPL Q2 Results: Net profit rises 13.5% YoY to ₹491 crore; firm highlights 'tough consumer demand, palm oil inflation'

Net profit margin increased to 13.5% from 12.1% in the year-ago period. 

The company, in its press release, added that its standalone business sales and volume grew by 7% year-on-year (YoY). It added that Indonesian volumes grew by 7% and sales grew by 11% in constant currency terms YoY. 

Africa, USA, and Middle East (organic) sales declined by 10% in rupee terms and were flat in constant currency terms on a YoY basis. Further, Latin America and other sales grew by 36% in rupee terms YoY.

GCPL's consolidated EBITDA during Q2 FY25 grew by 8% YoY. 

Commenting on the business performance of Q2FY 2025, Sudhir Sitapati, Managing Director and CEO of GCPL said: "GCPL has had a steady quarter given the headwinds of oil costs and tough consumer demand in India. Our standalone business grew by 7% in both volume and value and flat-reported EBITDA."

The CEO added that its standalone EBITDA margin of 24.3% is at the lower end of its targeted band and is caused entirely by high inflation on palm oil. The already high prices were further exacerbated by the import duty on oil.

"We think this is a short-term hit, and we will recover the margins through judicious price increases and stabilising of costs," Sitapati added.

The company added that the GAUM  (Godrej Africa, USA, and Middle East) segment continued to have a weak topline quarter but an exceptional bottom-line quarter. While organic volumes declined by 8% and value declined by 10%, reported EBITDA grew by 33%. "Our margins are now 14.4%."

"Our relaunch of Household Insecticides with the RNF molecule is showing clear green shoots in incense sticks and coils which were launched a few quarters earlier. Our focus is on continuing and improving our volume growth story while the palm oil price volatility plays out over the next few quarters," the company added. 

Update on interim dividend

The company declared an interim dividend of ₹5 per share (500% on equity shares of face value of ₹1/ each) for the financial year 2024-25. The record date for ascertaining the names of the shareholders who will be entitled to receive the said dividend is Friday, November 1, 2024. The dividend will be paid on or before Saturday, November 23, 2024.