Godrej Industries Q2 Results: Net Profit Plunges By 44%, Revenue Dips Over 2%

The company reported a net profit of Rs 87.30 crore in the quarter ended September in 2023-24 (FY24), against Rs 156.18 crore logged in the second quarter of the 2022-23 fiscal year (FY23).

Godrej Industries posted a fall of over 44 per cent in it’s consolidated net profit in it’s financial earnings for the second quarter (Q2) of the current fiscal year on Wednesday. The company reported a net profit of Rs 87.30 crore in the quarter ended September in 2023-24 (FY24), against Rs 156.18 crore logged in the second quarter of the 2022-23 fiscal year (FY23), revealed via an exchange filing.

The firm stated that the revenue from operations dipped a little over 2 per cent to Rs 3,937.61 crore in the second quarter of the current fiscal year, against Rs 4,021.04 crore logged in the same quarter a year earlier. Godrej Industries is the holding company of the group with businesses spread across industries including consumer goods, real estate, chemicals, agriculture, finance, and many others. 

Among the businesses, the company revealed that its consumer business, represented by Godrej Consumer Products Limited, witnessed a growth of 6 per cent in its consolidated sales on a year-on-year (YoY) basis. This was driven by a volume growth of 10 per cent and a jump in consolidated EBITDA by 30 per cent, both on a YoY basis. EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) is often used by companies as an alternative to net income to better understand their finances.

The chemical business of the group recorded a major decline in revenue and profit due to industry headwinds. The segment clocked exports at Rs 186 crore during the quarter under review. The revenue for the chemical business stood at Rs 683 crore in the reported quarter, against Rs 1,219 crore logged in the corresponding period a year earlier. 

The real estate segment of the group logged highest ever quarterly sales in the reporting period. This segment, Godrej Properties Limited, clocked an overall booking value of Rs 5,034 crore with 5.24 million sq ft area sold during the quarter under review. The real estate business also added 1 new plotted development project in Nagpur with an estimated booking value of Rs 725 crore.