Godrej Consumer reports a 25% decline in its net profit due to rising input costs

Godrej Consumer Products reported a net profit of INR 358.9 crore for the July-September period — down 25 percent compared with the corresponding quarter a year ago. The FMCG giant’s profitability was marred by elevated levels of inflation, as high input costs continued to eat into its margin.

FMCG companies have been reeling under margin pressure due to high costs of raw material even as consumer prices have somewhat eased from their worst levels of the year. The company’s quarterly revenue came in at INR 3,392 crore, up seven percent on a year-on-year basis, according to a regulatory filing.

Revenue from the home care and personal care segments grew two percent and 18 percent respectively, according to a company statement. Unbranded and export revenue, however, fell 26 percent compared with the year-ago period. The company reported an EBITDA margin reduced by 450 bps to 17.1 percent for the three-month period compared with the year-ago quarter. Its cost of raw material including packaging increased 18.4 percent to INR 1,705.1 crore.