Financial Daily from THE HINDU group of publications
Tuesday, Jul 23, 2002
Godrej Consumer Q1 net at Rs 12.77 cr
Mr Adi B. Godrej, Chairman & Managing Director, Godrej Consumer Products Ltd (right), with Mr Jamshyd N. Godrej, Director, at the company's AGM in Mumbai on Monday.
MUMBAI, July 22
GODREJ Consumer Products Ltd (GCPL) has reported a 39 per cent increase in net profit at Rs 12.77 crore for the first quarter ended June 2002 against Rs 9.17 crore in the year-ago period.
Sales stood at Rs 114.87 crore as compared to Rs 126.87 crore in the year-ago period.
Other income was Rs 0.17 crore (Rs 0.05 crore).
GCPL's board, which met today, decided not to proceed with the buyback proposal approved earlier.
Instead, the board has approved a proposal for buyback of shares from the open market for a price not exceeding Rs 175 per share and a maximum outlay of Rs 4.6 crore.
According to Mr Adi Godrej, Chairman, GCPL, the decision to go in for another proposal is primarily on account of the price of the earlier buyback proposal.
The company had earlier proposed to buy shares from the open market for a price not exceeding Rs 100 per share.
The board also recommended an interim dividend of Rs 2 per share for 2002-2003.
GCPL's soaps and hair colour business both recorded 11 per cent increase in sales.
Soaps stood at Rs 65.69 crore (Rs 59.1 crore), hair colour Rs 28.53 crore (Rs 25.66 crore). However, toiletries fell by 9 per cent to Rs 9.37 crore from Rs 10.29 crore in the year-ago period.
Addressing shareholders at GCPL's annual general meeting, Mr Godrej said the company's results vindicate the group's decision to demerge Godrej Soaps Ltd.
"Our focus on power brands and distribution system has helped growth,'' he said.
He told shareholders that the company's decision to go in for buyback of shares is to pass on excess cash to investors and not to delist the stock. The promoters' holding in GCPL has risen to 71.91 per cent from 67.07 per cent, he said.
In the area of liquid detergents, the company would look at product variants. "Currently, our liquid detergent brand Ezee is aimed at wool. Silk is one possibility, we are looking at,'' he said.
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