GCPL Reports Unexpected Loss in Q4 Despite 6% Revenue Surge

While GCPL faced unexpected losses in Q4FY24, its underlying volume growth and revenue increase suggest resilience amidst challenges, with a continued focus on innovation and shareholder value.

Surprise Consolidated Net Loss:

GCPL reported a consolidated net loss of Rs 1,893 crore for Q4FY24, a significant deviation from the net profit of Rs 452.14 crore in the same period last year.

This unexpected loss was primarily attributed to exceptional items totaling Rs 2,376 crore recorded during the quarter.

Exceptional Items: The exceptional items included a loss of Rs 792.6 crore on the sale of investment in Godrej East Africa Holdings and an impairment provision of Rs 273.9 crore for the diminution in the value of investment in Godrej Mauritius Africa Holdings.

These losses were incurred due to changes in the business model and long-term strategy for Africa, as stated by the company.

Revenue Growth: Despite the unexpected loss, revenue from operations for the March quarter witnessed a 6% increase, amounting to Rs 3,365.11 crore compared to Rs 3,172.21 crore reported in the previous year.

This revenue figure slightly exceeded the consensus forecast of Rs 3,361 crore by analysts tracked by Bloomberg.

Underlying Volume Growth: The underlying volume growth at a consolidated level was reported at 12% in Q4, with the India business contributing significantly with a volume growth of 15% during the quarter.

This indicates robust performance in terms of product sales and market demand.

Focus on Volume-led Growth: GCPL's Managing Director & CEO, Sudhir Sitapati, emphasized the company's commitment to driving volume-led growth by making healthy investments behind its brands.

Sitapati highlighted the launch of new products aligned with the company's purpose of bringing health and beauty to consumers.

Interim Dividend: The board of GCPL recommended an interim dividend of Rs. 10 per share for the financial year 2023-24, reflecting the company's confidence in its financial position and commitment to shareholder returns.

Market Performance: Despite the financial results, shares of GCPL closed slightly lower on the BSE at Rs 1,250.75 apiece on Monday.

This occurred against the backdrop of a range-bound broader BSE Sensex, which ended marginally higher compared to the previous day's close.