Share price of this large-cap FMCG stock and a part of Godrej Group, moved up by nearly 8 percent on BSE to hit an intraday high at Rs. 1,349.65 on the morning trading session of Tuesday, despite reporting weak Q4 results.
With a market capitalisation of Rs. 1.31 lakh crore, at 10:45 a.m., the shares of Godrej Consumer Products Limited were trading in the green at Rs. 1,285.95, up by 2.81 percent.
The stock has delivered positive returns of nearly 36.12 percent in the last one year and around 25.8 percent in the last six months. So far in 2024, the company has given about 12.3 percent positive returns.
The fluctuations in the share prices were observed after Godrej Consumer Products Limited (GCPL) announced the financial results for Q4 FY23-24 and FY24, through the recent filings with the stock exchanges on Monday post-market hours.
From Rs. 3,659.64 crore in Q3 FY23-24 to Rs. 3,385.61 crore in Q4 FY23-24, revenue from operations declined by 7.5 percent QoQ, but increased by 5.8 percent YoY from Rs. 3,200.16 crore in Q4 FY22-23 to Rs. 3,385.61 crore in Q4 FY23-24.
Due to an exceptional loss of Rs. 2,375.65 crore for the quarter (compared to an exceptional loss of Rs. 22.2 crore in the same time last year), GCPL reported a net loss of Rs. 1,893.21 crore in Q4 FY23-24 from Rs. 581.06 crore in Q3 FY23-24 and Rs. 452.14 crore in Q4 FY22-23.
The impairment loss of Rs. 1,390.8 crore towards Brand and Goodwill for Africa and Rs. 927.2 crore related to a loss on sale of subsidiaries and business in East Africa as a result of changes in business model and long-term strategy for Africa are among the exceptional items for the year ended March 31, 2024.
The stamp duty payment and other costs of Rs. 87.8 crore related to the acquisition of Raymond Consumer Care Business and Rs. 71 crore related to other group restructuring expenses, such as employee severance pay and inventory-related costs, etc., are also considered exceptional items.
For the year ended March 31, 2023, exceptional items include impairment loss of Rs. 6 crore towards brands, restructuring costs of Rs. 29.3 crore and Rs. 18.8 crore on account of litigation settlement under the VAT amnesty scheme in the Consolidated Financial Results.
The Standalone Financial Results of GCPL for the year ended March 31, 2024, show that the company experienced exceptional items such as a loss
of Rs. 792.6 crore on the sale of its investment in Godrej East Africa Holdings Limited and an impairment provision of Rs. 273.9 crore for the diminution in value of its investment in Godrej Mauritius Africa Holdings Limited due to changes in the company’s business model and a long-term strategy refresh for Africa.
Further, the Board of the company declared an interim dividend of Rs. 10 per share (1000 percent on shares of the face value of Re. 1 each) for FY25. The dividend will be paid on or before Wednesday, June 5, 2024.
Godrej Consumer Products Limited is a household and personal care producer, and has three main product categories: home care, hair care, and personal care.
GCPL is one of the largest Household Insecticide and Hair Care players in emerging markets. The company is a leader in India for household insecticides, is the second largest player in Indonesia and is rapidly expanding its footprint in Africa.
Written by Shivani Singh
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
