Commodity Online
MUMBAI: Undeterred by the current global recession, the Indian FMCG giant Godrej Consumer Products Limited (GCPL) has recorded strong performance for Q4 FY09 with heavy revenue and operational gains.
The company is said to have performed exceptionally well in the final quarter of the past fiscal. GPCL’s revenues grew by 27.9% YoY to Rs.3.4 bn with strong turnover in domestic business. GCPL recorded operational gains in Q4 FY09 with 520 bps QoQ gains in operating margin to 19.3% attributed to gains from material costs and lower advertising spends.
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Strong operational performance and higher other income helped company’s adjusted net profit to grow by 45.4% YoY to Rs.0.6 bn.
Considering the robust operational performance of the company, the analysts have upgraded company’s FY10 E estimates by 10%. Emkay Research has estimated a sharp rise in the stock pricing of the company in near term. Company’s current stock prices is Rs.142.50. The stock traded in red due to heavy selling pressure witnessed across the board.
Company’s product range, Soaps and Hair Color reported strong growth at 46.0% YoY (Rs.1.8 bn) and 15.3% YoY (Rs.0.8 bn) respectively with healthy mix of volume and price-led growth.
However, the performance of international business was lackluster with growth of 13.2% YoY with key subsidiaries posting disappointing performance. GCPL international business posted decline of 4.2% YoY.
With inputs from Emkay Global Financial Services Ltd
