Godrej Consumer Products Limited

Godrej Consumer Products Limited

Q1 2002-03 Performance Update

Godrej Consumer Products LimitedGodrej Consumer Products Limited

22 July 200222 July 2002

Quarterly updateQuarterly update

Q1 2002-03Q1 2002-03



ContentsContents

• HighlightsHighlights

• AnnouncementsAnnouncements

• Business InitiativesBusiness Initiatives

• Key FinancialsKey Financials

• Key RatiosKey Ratios



Highlights Q1 02-03Highlights Q1 02-03

Rs.CroreRs.CroreSales (own Brands)Sales (own Brands) 104.2 9%104.2 9%(net of excise)(net of excise)

PBDITPBDIT 21.2 21.2 20%20%

PATPAT 12.8 12.8 39%39%

EVAEVA 9.7 9.7 49%49%



AnnouncementAnnouncementss

• Shares Buy-backShares Buy-back

• Interim Dividend Interim Dividend



Shares Buy-backShares Buy-back• First Buyback completed.

• 14,56,593 shares bought back at an avg price of Rs.64

aggregating Rs.9.3 Crore (2.5% of Share Capital)

• Shareholders approve second buyback from the open

market at market price (not exceeding Rs.100 per share)

– Total outlay Rs.10 Crore – (not being proceeded with)

• Board approves new buyback from open market at a

price not exceeding Rs.175 per share – Total outlay

Rs.4.6 Crore



Interim Dividend (2002-03)Interim Dividend (2002-03)

•First Interim Dividend announced

Dividend per share Rs.2.00

Dividend % 50%

Total outlay Rs.11.7 Crore



Business InitiativesBusiness Initiatives

• Consumer centricity to guide all business actions

• Total Productive Maintenance (TPM) progressing

rapidly at Malanpur

• Second Year of EVA driven performance: Individual

Performance Factor for Performance Linked Variable

Remuneration introduced

• Flexi-timing implemented effective April ’02.



Fiscal Fiscal InitiativesInitiatives• Return excess cash to the shareholders through dividend

and buyback

• Exploit tax benefits in backward areas; more opportunities

being evaluated for fiscal benefits



Marketing & Sales InitiativesMarketing & Sales InitiativesPower Brands:

• Cinthol, Godrej FairGlow, Godrej No.1, Godrej Hair Colour, Ezee.

• Power Brands sales grew by 15%

Toilet Soaps

• Godrej Brand Soaps sales grew by 11% from Rs.59.1 Cr in Q1 01-02 to Rs.65.7 Cr in Q1 02-03 led by Godrej No1 which grew by 69%

• Relaunched Godrej FairGlow



Marketing & Sales Initiatives Marketing & Sales Initiatives Contd…Contd…

Hair Colour

• Hair Colour sales grew 11% from Rs.25.7 Cr in Q1 01- 02 to Rs.28.5 Cr in Q1 02-03

• Launched Mehendi Power in sachets under the brand name Godrej Nupur

• Launched Copper Brown, Dark Mahogany & Burgundy fashion shades of Godrej Coloursoft.



Sales Growth vs Industry GrowthSales Growth vs Industry GrowthAMJ ‘02 vs AMJ‘01AMJ ‘02 vs AMJ‘01

IndustryIndustry GCPL GCPL GCPL GCPL (ORG offtake) (ORG offtake)(ORG offtake) (ORG offtake) ShipmentShipment

Toilet Soaps (7.5) (6.3) 11

Hair Colour 0.1 (0.2) 11

Liquid Detergents 28.8 47.8 75

Fairness Cream (8.0) (32.5) (64)

Shaving Cream (14.2) 9.3 34

Talcum Powder (12.2) 1.8 22

Deodorants (14.2) -- --



Market SharesMarket Shares

Source : ORG DataAll figures shown are % for All India Value MS

Apr-Jun’02 Apr-Jun-01Apr-Jun’02 Apr-Jun-01

Toilet Soaps 6.0 5.9

Hair Colour 44.4 44.5

Liquid Detergents 84.8 73.9

Fairness Cream 2.8 3.8

Shaving Cream 12.5 9.8

Talcum Powder 1.7 1.5

Deodorants 1.4 --



Category-wise Turnover Q1Category-wise Turnover Q1Rs Crore

Turnover (net of Excise) Q1 02-03Q1 02-03 Q1 01-02 Growth %Q1 01-02 Growth %

Toilet Soaps 65.7 59.1 11%

Hair Colour 28.5 25.7 11%

Liquid Detergents 0.6 0.3 75%

Toiletries 9.4 10.3 (9)%

Total Godrej Brands 104.2 95.4 9%

Contract Mfg 4.5 29.2 (84)%**

By-Products 6.2 2.3 168%

Total Sales 114.9 126.9 (9)%

**due to change from sales to processing contract



Sales-Mix Q1- 2002-03Sales-Mix Q1- 2002-03

Godrej Brand Toilet Soaps

(Rs.65.7 cr)

Contract Mfg(Rs.4.5 cr)

Liquid Detergent(Rs.0.6 cr)

Hair Colour(Rs.28.5 cr)

Toiletries

(Rs. 9.4 cr)

By-Products(Rs.6.2 cr)



ExportsExports(directly(directly servicedserviced markets)markets)

Rs.Crore

Q1 ’02-03Q1 ’02-03 Q1 ’01-02Q1 ’01-02 Growth

•Total exports revenue 2.3 1.3 77%



FinancialsFinancials



Summarised Profit & Loss AccountSummarised Profit & Loss AccountRs Crore

Q1 02-03 Q1 01-02 Q1 02-03 Q1 01-02

Sales (Net of Excise) 114.9 126.9

- Godrej Brands 104.2 95.4

- Contract Mfg 4.5 29.2

- By-products 6.2 2.3

Processing charges 3.1 0.0

Other Income 0.2 0.0

Expenditure 97.0 109.4

PBDIT 21.2 17.6

Depreciation 2.3 2.3

Interest 0.7 1.5

PBT 18.2 13.8



Balance Sheet Balance Sheet

Liabilities Assets

30-6-02 31-3-02 30-6-02 31-3-02

Equity Capital 23.3 23.6 Net Fixed Assets 92.0 93.5

Reserves 37.4 29.5 Cash & Bank Bal 6.8 10.7

Debt 17.4 22.5 Investments 8.8 2.5

Def. Tax Liability 2.8 2.6 Net Current Assets (26.7) (28.5)

Total 80.9 78.2 Total 80.9 78.2

Rs.Crore



Funds Flow Funds Flow

Rs Crore

Q1 02-03

SOURCES

Internal Accruals 15.1

APPLICATION

Debt Reduction 5.1

Capital Expenditure 0.8 W.Capital change 1.6

Change in cash & investments 2.4

Shares Buyback 5.2

Total 15.1



Cost StructureCost StructureRs Crore

Q1 ’02-03 % of Sales Q1 ’01-02% of sales

Materials cost 54.6 47.6% 65.1 51.3%

Staff Cost 6.1 5.3% 4.5 3.5%

Advtg & Sales Promotion 14.0 12.2% 20.4 16.1%

Other Expenditure 22.3 19.4% 19.4 15.3%

Interest & Financial Charges 0.7 0.6% 1.5 1.2%

Depreciation 2.3 2.0% 2.3 1.8%

Provision for Taxation 5.4 4.7% 4.6 3.6%

PAT 12.8 11.1% 9.2 7.2%

Sales 114.9 100.0% 126.9 100.0%

Processing charges 3.1 2.7%

Other Income 0.2 0.2% 0.1 0.0%



Key RatiosKey Ratios

Q1 02-03 Q1

01-02

PBDIT / Sales 18.5% 13.9%

PBT / Sales 15.8% 10.9%

PAT / Sales 11.1% 7.2%

Interest / Sales 0.6% 1.2%



Key Ratios contd..Key Ratios contd..

Q1 02-03 Q1 01-02

NWC / Sales (days) -21.2 -2.9

Fixed Asset T/o Ratio 5.0 5.2

Total Asset T/o Ratio 5.7 5.5

ROCE 93.4% 65.8%

RONW 84.3% 63.4%

EPS (on Rs.4 Share) 8.7 6.1

All figures are annualised



Thank YouThank You

Godrej Consumer Products Limited

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