Godrej Consumer Products Limited

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Godrej Consumer Products Limited
22 July 2003Quarterly update Q1 2003-04
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Contents

• Highlights
• Announcement
• Business Highlights
• Key Financials
• Key Ratios

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Highlights Q1 2003-04
Q1 03-04 Q1 02-03
Rs.Crore Sales (own
Brands) 106.7 2 104.2 (net of
excise) PBDIT 18.7 (12) 21.2
Material Cost 61.6 54.6 A P
10.3 14.0 PAT 13.8 8
12.8 EVA 11.1 14 9.7
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Announcement

• Interim Dividend

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Dividend (2003-04)

• First Interim Dividend announced
• Dividend per share Rs.2.00
• Dividend 50
• Total outlay (including tax on Rs.13.0 Cr
• distributed profits)

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Business Highlights

• Industry Scenario
• Business impacted by continued uncertainty over
  VAT implementation as well as the Transport
  strike in April03
• International prices of inedible palm oil ruled
  high in Q1. Prices expected to come down in the
  coming quarters
• Good monsoon expected to improve consumer spending

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Business Highlights contd..

• GCPL acquires Snuggy brand (Baby Diapers)
• - opportunity to enter new categories
• GCPL shortlisted for On Site Audit in the Best
  Employers in India 2003 study by Hewitt
  Associates
• Tax Excise benefits continue to accrue from
  Guwahati operations
• Himachal Pradesh tax exemption notification
  expected to result in setting up a manufacturing
  facility in the State
• Contract Manufacturing activity continued to
  decline

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Business Highlights contd..

• Soap
• Godrej Brand soap sales registered 14 volume
  growth
• Godrej No.1 is now the largest selling Grade 1
  brand soap (by volume) in the country. This Grade
  is attributable to only pure soaps stipulates a
  standard minimum 76 TFM content and limited
  levels of additives.

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Business Highlights contd..

• Soap
• Cinthol Skin Stimulating Deo soap launched
• GCPL ranked second by ORG-MARG in terms of value
  market share in the urban segment.
• Increased focus on sales promotion by way of
  price off free additional quantity offers

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Business Highlights contd..

• Personal Care
• New Launches during the quarter
• Godrej Shaving Gel
• Godrej Herbal Powder Hair Dye
• Maintained market leadership in the hair colours
  and liquid detergent categories and continued
  focus on growing the categories

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Sales Growth vs Industry GrowthApr-Jun 03 vs
Apr-Jun02
Industry GCPL GCPL
(ORG offtake) (ORG
offtake) Shipment Toilet Soaps (4) 4
7 Hair Colours 8
7 3

All figures shown are change for All India
Value Source Industry data ORG MARG
12
Market Shares
Apr-Jun03
Apr-Jun02 Toilet Soaps 6.3
5.8 Hair Colours 44.1
44.4
All figures shown are for All India Value
MS Source ORG Data
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Segmental data (Q1 2003-04)
Rs Crore Segment Revenue Q1 03-04
Soap 81.8 Personal Care
37.2 Unallocated income
0.0 Total
119.0 PBIT Soap 4.2
Personal Care 16.0 Segment PBIT
20.2 Less Interest (Net) 0.6 Less
other unallocated expenses 3.8 PBT
15.8
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Segmental data (Q1 2003-04)
Rs Crore Segment Capital Employed Q1 03-04
Soap 30.7
Personal Care 22.0 Unallocated
21.9 Total
74.6 Includes Contract
Manufacturing
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Category-wise Turnover Q1
Rs Crore Turnover (net of Excise) Q1 03-04
Q1 02-03 Growth Toilet
Soaps 70.1 65.7 7 Hair Colours 29.3 28.5
3 Liquid Detergents 0.8 0.6
38 Toiletries 6.5 9.4
(30) Total Godrej Brands 106.7
104.2 2 Contract Mfg 5.8 4.5 28
By-Products 5.4 6.2
(13) Total Sales 117.9
114.9 3
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Sales-Mix Q1 - 2003-04

Liquid Detergent (Rs.0.8 cr) (1)
By-Products (Rs.5.4 cr) (5)
Toiletries (Rs. 6.5 cr) (5)
Godrej Brand Toilet Soaps (Rs.70.1 cr) (59)
Hair Colours (Rs.29.3 cr) (25)
Contract Mfg (Rs.5.8 cr) (5)
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Financials
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Summarised Profit Loss Account
Rs Crore Q1 03-04 Q1
02-03 Sales (Net of
Excise) 117.9 114.9 3 - Godrej
Brands 106.7 104.2 2 -
Contract Mfg 5.8 4.5 -
By-products 5.4 6.2
Processing charges 1.1 3.1
Other Income 0.2 0.2
Expenditure 100.5 97.0
PBDIT 18.7 21.2 (12)
Depreciation 2.3 2.3
Interest 0.6 0.7 PBT
15.8 18.2 (13) PAT 13.8
12.8 8
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Balance Sheet
Rs.Crore
Liabilities Assets
30-06-03 31-3-03
30-06-03 31-03-03 Equity Capital
22.9 23.1 Net Fixed Assets
91.8 87.8 Reserves 33.4
22.4 Cash Bank Bal 6.5
7.2 Debt 16.1 17.9
Investments 20.0 4.0 Def. Tax Liability
4.7 4.7 Net Current Assets
(28.2) (17.9) Dividend
payable (13.0) (13.0) Total
77.1 68.1 Total
77.1 68.1
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Funds Flow
Rs Crore
Q1 03-04 Q1 02-03 SOURCES Internal
Accruals 16.1 15.1 Total 16.1
15.1 APPLICATION Debt
1.8 5.1 Capital Expenditure 6.2
0.8 W.Capital change
(10.3) 1.6 Change in cash investments
15.3 2.4 Shares Buyback 3.1
5.2 Dividend 0.0
0.0 Total 16.1
15.1
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Cost Structure (Q1 2003-04)
Rs.Crore
Rs Crore Q1 03-04 of Sales
Q1 02-03 of sales
Materials cost 61.6 52.2
54.6 47.6 Staff Cost 5.7 4.8
6.1 5.3 Advtg Sales Promotion 10.3
8.7 14.0 12.2 Other Expenditure
22.9 19.4 22.3 19.4 Interest Financial
Charges 0.6 0.5 0.7
0.6 Depreciation 2.3 2.0 2.3
2.0 Provision for Taxation 2.0
1.7 5.4 4.7 PAT 13.8 11.7
12.8 11.1 Sales 117.9
100.0 114.9 100.0 Processing
charges 1.1 0.9 3.1
2.7 Other Income 0.2 0.1 0.2
0.2
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Key Ratios
Q1 03-04 Q1 02-03 PBDIT / Sales 15.9
18.5 PBT / Sales 13.4 15.8 PAT /
Sales 11.7 11.1 Interest / Sales
0.5 0.6
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Key Ratios contd..
Q1 03-04 Q1 02-03 NWC / Sales
(days) (22) (21) Fixed Asset
T/o Ratio 5.1 5.0 Total
Asset T/o Ratio 6.1 5.7
ROCE 90.9 93.4
RONW 98.2 84.3 EPS (on Rs.4
Share) 9.6 8.7
All figures are annualised
On closing Capital Employed Closing Networth
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Thank You