Godrej Consumer Products Ltd.’s share price was up nearly 6% after it reported an over 13% year-on-year uptick in its second quarter profit. The profit met analysts’ estimates.
Consolidated net profit increased 13.4% over the year earlier to Rs 491 crore in the quarter-ended Sept. 30, 2024, according to an exchange filing. That compares with the Rs 499-crore consensus forecast of analysts tracked by Bloomberg.
Its revenue declined 1.77% to Rs 3,666 crore, as against an estimate of Rs 3,631 crore.
“Our standalone Ebitda margin at 24.3% is at the lower end of our 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 increase and stabilising of costs,” said Sudhir Sitapati, managing director and chief executive officer of the company.
Godrej Consumer Products also announced a third interim dividend for the fiscal at Rs 5 per share via exchanges. The record date for the payment of dividend is Nov. 1.
Content retrieved from: https://www.ndtvprofit.com/markets/godrej-consumer-share-price-rises-after-q2-profit-uptick-dividend-announcement.
