Godrej Consumer Products Limited Q3 2003-04 Performance Update Godrej Consumer Products Limited 31 January 2004 Quarterly update Q3 & 9M 2003-04

Godrej Consumer Products Limited

Q3 2003-04 Performance Update

Godrej Consumer Products LimitedGodrej Consumer Products Limited

31 January 200431 January 2004

Quarterly updateQuarterly update

Q3 & 9M 2003-04Q3 & 9M 2003-04



ContentsContents

• HighlightsHighlights

• Business HighlightsBusiness Highlights

• Key FinancialsKey Financials

• Key RatiosKey Ratios



Highlights Q3 & 9M 2003-04Highlights Q3 & 9M 2003-04 Q3 ’03-04 Q3 ’02-03 9M ’03-04 9M 02-03

Sales (own Brands)Sales (own Brands) 125.4 125.4 3% 3% 121.2 347.5 121.2 347.5 5%5% 329.8 329.8

(net of excise)(net of excise)

Contract MfgContract Mfg 0.1 0.1 (97%)(97%) 4.6 8.6 4.6 8.6 (51%)(51%) 17.5 17.5

Total SalesTotal Sales 128.3 128.3 (1%)(1%) 128.9 367.6 128.9 367.6 1%1% 362.4 362.4

Material CostMaterial Cost 54.8 54.8 63.0 178.2 63.0 178.2 171.0 171.0

A & PA & P 17.4 17.4 16.0 16.0 39.539.5 44.7 44.7

PBDITPBDIT 25.8 25.8 14% 14% 22.7 22.7 63.563.5 (3%)(3%) 65.7 65.7

PATPAT 17.9 17.9 21% 21% 14.814.8 45.645.6 10%10% 41.6 41.6

EVAEVA 14.8 14.8 26% 26% 11.711.7 37.037.0 16%16% 31.9 31.9

EPS (Rs.)EPS (Rs.) 12.6 12.6 24%24% 10.2 10.2 10.610.6 12%12% 9.5 9.5

Amts in Rs. CroreAmts in Rs. Crore



Dividend (2003-04)Dividend (2003-04)

• Third Interim Dividend announced

Dividend per share Rs.2.00

Dividend % 50%

Total outlay (including tax on Rs.12.8 Cr distributed profits)

Dividend % till date for 2003-04 150%

Dividend payout as a % of YTD PAT 84.7%

( Dividend payout has been taken incl distribution tax)



Shares Buy-backShares Buy-back• Fourth buyback from open market at a price not

exceeding Rs.200 per share at a total outlay of Rs.3.7 crore –

- 135477 shares bought back till date at an outlay of Rs 2.06 crore

• Fifth buyback from open market (to commence after the completion of Fourth buyback) at a price not exceeding Rs.200 per share at a total outlay of Rs.8.4 crore approved by the Board (subject to shareholders approval)



Business HighlightsBusiness Highlights

Industry Scenario• Rupee continues to strengthen vs US Dollar

• Vegetable Oil prices are moving up

• Most categories in FMCG continue to degrow

• Import duties on vegetable oils have come down



Business Highlights Business Highlights contd..contd..

• GCPL has been included in the BSE “A” Group w.e.f Nov 3, 2003

• GCPL’s Malanpur Factory received the Qimpro Certificate of Merit in recognition of being “Proficient and accepted by industry as being a superior operation”.

• In Dec’03 the Malanpur Factory also won the National Safety Council of India’s award “in recognition of developing & implementing effective management systems & procedures”.

• GCPL Malanpur factory won 12 awards in NCQC 2003 held at Madurai



Soap• Growth - GCPL brands in Q3 2003-04

8% in volume terms • Godrej No.1 grew by 19% in volume terms during Q3 2003-04

• Cinthol recognised by superbrands Council (UK) to be a super brand; also mentioned amongst ‘Brand Equity’ most trusted brands in 2003

• Himachal Pradesh unit has commenced operations in Jan’04

Business Highlights Business Highlights contd..contd..

Personal Care• Godrej Renew cream hair colour launched



Sales Growth vs Industry GrowthSales Growth vs Industry GrowthOct-Dec ‘03 vs Oct-Dec ‘02Oct-Dec ‘03 vs Oct-Dec ‘02

IndustryIndustry GCPL GCPL GCPL GCPL

(ORG offtake) (ORG offtake)(ORG offtake) (ORG offtake) ShipmentShipment

Toilet Soaps (5%) 10% 2%

Hair Colours 7% 4% 3%

All figures shown are % change for All India ValueSource :Industry data : ORG MARG



Market SharesMarket Shares

All figures shown are % for All India Value MSSource : ORG Data

Oct-Dec’03 Oct-Dec’03

Oct-Dec’02Oct-Dec’02

Toilet Soaps 6.7% 5.8%

Hair Colours 42.7% 44.0%



Rs Crore

Segment Revenue Q3 03-04 Q3 0203 9M 03-04Q3 03-04 Q3 0203 9M 03-04 9M 0203 9M 0203

Soap 64.7 68.4 230.1 228.6 Personal Care 63.6 60.8 139.5 139.5Unallocated income - - - -Total 128.3 129.2 369.6

368.1PBIT Soap 5.4 2.7 19.6 18.7Personal Care 22.6 21.6 49.3 51.0Segment PBIT 28.1 24.3 68.9 69.7

Less Interest (Net) 0.7 1.0 1.8 2.5Less other unallocated expenses 4.7 3.9 12.3 10.8PBT 22.7 19.4 54.7 56.5

Segmental data (Q3 & 9M 2003-04)Segmental data (Q3 & 9M 2003-04)



Segmental data (Q3 & 9M 2003-04)Segmental data (Q3 & 9M 2003-04)

Rs Crore

Segment Capital Employed Q3 & 9M 03-04Q3 & 9M 03-04 Q3 & 9M 0203Q3 & 9M 0203

Soap * 38.9 51.6

Personal Care 23.7 12.1

Unallocated 17.5 21.5

Total 80.1 85.2

* Includes Contract Manufacturing



Category-wise Turnover Q3Category-wise Turnover Q3Rs Crore

Turnover (net of Excise) Q3 03-04Q3 03-04 Q3 02-03 Growth %Q3 02-03 Growth %

Toilet Soaps 62.4 61.1 2%

Hair Colours 30.1 29.1 3%

Liquid Detergents 27.2 25.7 6%

Toiletries 5.7 5.3 7%

Total Godrej Brands 125.4 121.2 3%

Contract Mfg 0.1 4.6 (97%)

By-Products 2.8 3.1 (11%)

Total Sales 128.3 128.9 (1%)



Sales-Mix Q3 - 2003-04Sales-Mix Q3 - 2003-04

Godrej Brand Toilet Soaps

(Rs.62.4 cr)

(50%)

Contract Mfg(Rs.0.1 cr)

(0%)

Liquid Detergent(Rs.27.2 cr)

(21%)

Hair Colours(Rs.30.1 cr)

(23%)

Toiletries(Rs. 5.7 cr)

(4%)

By-Products(Rs.2.8 cr)

(2%)



Category-wise Turnover 9MCategory-wise Turnover 9MRs Crore

Turnover (net of Excise) 9M 03-049M 03-04 9M 02-03 Growth %9M 02-03 Growth %

Toilet Soaps 209.9 192.6 9%

Hair Colours 86.9 85.1 2%

Liquid Detergents 31.2 29.7 5%

Toiletries 19.5 22.4 (13%)

Total Godrej Brands 347.5 329.8 5%

Contract Mfg 8.6 17.5 (51%)

By-Products 11.5 15.1 (24%)

Total Sales 367.6 362.4 1%



Sales-Mix 9M - 2003-04Sales-Mix 9M - 2003-04

Godrej Brand Toilet Soaps

(Rs.209.9 cr)

(58%)

Contract Mfg(Rs.8.6 cr)

(2%)

Liquid Detergent(Rs.31.2 cr)

(8%)

Hair Colours(Rs.86.9 cr)

(24%)

Toiletries(Rs.19.5 cr)

(5%)

By-Products(Rs.11.5 cr)

(3%)



FinancialsFinancials



Summarised Profit & Loss AccountSummarised Profit & Loss Account Rs Crore

Q3 03-04 Q3 02-03 Q3 03-04 Q3 02-03 9M 03-04 9M 02-03 9M 03-04 9M 02-03

Sales (Net of Excise) 128.3 128.9 (1%) 367.6 362.4 1%

- Godrej Brands 125.4 121.2 3% 347.5 329.8 5%

- Contract Mfg 0.1 4.6 8.6 17.5

- By-products 2.8 3.1 11.5 15.1

Processing charges 0.0 0.3 2.0 5.7

Other Income 0.2 0.2 0.8 0.7

Expenditure 102.7 106.7 306.9 303.1

PBDIT 25.8 22.7 14% 63.5 65.7 (3%)Depreciation 2.4 2.3 7.0 6.8

Interest 0.7 1.0 1.8 2.5

PBT 22.7 19.4 17% 54.7 56.5 (3%)

PAT 17.9 14.8 21% 45.6 41.6 10%



Balance Sheet Balance Sheet

Liabilities Assets

31-12-03 30-9-03 31-12-03 30-09-03

Equity Capital 22.8 22.8 Net Fixed Assets 97.8 90.2

Reserves 34.0 30.8 Cash & Bank Bal 6.4 14.2

Debt 17.4 18.3 Investments 9.2 0.0

Def Tax Liability 5.9 5.2 Net Current Assets (33.3) (27.3)

Dividend payable 0.0 0.0

Total 80.1 77.1 Total 80.1 77.1

Rs.Crore



Rs Crore

Q3 03-04 9M 03-04

SOURCES

Internal Accruals 20.3 52.6

Total 20.3 52.6

APPLICATION

Debt 0.9 0.5

Capital Expenditure 10.0 16.9

W.Capital change (6.7) (16.6)

Change in cash & investments 1.4 4.4

Shares Buyback 1.9 8.7

Dividend 12.8 38.7

Total 20.3 52.6

Funds Flow Funds Flow



Cost Structure (Q3 2003-Cost Structure (Q3 2003-04)04) Rs.Crore Rs Crore

Q3 ’03-04 %of Sales Q3 ’02-03 %of

sales

Materials cost 54.8 42.7% 63.0 48.9%

Staff Cost 6.6 5.1% 7.4 5.7%

Advtg & Sales Promotion 17.4 13.6% 16.0 12.4%

Other Expenditure 24.0 18.7% 20.3 15.7%

Interest & Financial Charges 0.7 0.5% 1.0 0.8%

Depreciation 2.4 1.9% 2.3 1.8%

Provision for Taxation 4.8 3.7% 4.6 3.6%

PAT 17.9 14.0% 14.8 11.5%

Sales 128.3 100.0% 128.9 100.0%

Processing charges 0.0 0.0% 0.3 0.2%

Other Income 0.2 0.2% 0.2 0.2%



Cost Structure (9M 2003-Cost Structure (9M 2003-04)04) Rs.Crore Rs Crore

9M ’03-04 %of Sales 9M ’02-03 %of

sales

Materials cost 178.2 48.5% 171.0 47.2%

Staff Cost 18.5 5.0% 19.9 5.5%

Advtg & Sales Promotion 39.5 10.7% 44.7 12.3%

Other Expenditure 70.8 19.3% 67.5 18.6%

Interest & Financial Charges 1.8 0.5% 2.5 0.7%

Depreciation 7.0 1.9% 6.8 1.9%

Provision for Taxation 9.1 2.5% 14.9 4.1%

PAT 45.6 12.4% 41.6 11.5%

Sales 367.6 100.0% 362.4 100.0%

Processing charges 2.0 0.5% 5.7 1.6%

Other Income 0.8 0.2% 0.7 0.2%



Key RatiosKey Ratios

Q3 03-04 Q3 02-03 9M 03-

04 9M 02-03

PBDIT / Sales 20.1% 17.6% 17.3% 18.1%

PBT / Sales 17.7% 15.0% 14.9% 15.6%

PAT / Sales 14.0% 11.5% 12.4% 11.5%



Key Ratios contd..Key Ratios contd..

Q3 03-04 Q3 02-03 9M 03-

04 9M 02-03

NWC / Sales (days) (23) (11) (24) (12)

Fixed Asset T/o Ratio 5.2 5.8 5.0 5.4

Total Asset T/o Ratio 6.4 6.1 6.1 5.7

ROCE* 116.8% 95.8% 94.2% 92.2%

RONW* 126.3% 95.8% 107.1% 89.8%

EPS (on Rs 4 Share) 12.6 10.2 10.6 9.5

All figures are annualised* On closing Capital Employed & Closing Networth



Thank YouThank You

Documents

Godrej Consumer Products Limited Q3 2003-04 Performance Update Godrej Consumer Products Limited 31 January 2004 Quarterly update Q3 & 9M 2003-04