Godrej Consumer Products Limited

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Godrej Consumer Products Limited
21 January 2006Quarterly update Q3 9M 2005-06
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Contents

• Highlights
• Business Highlights
• Acquisition Update and Consolidated Financials
• Sales Highlights
• GCPL Financials
• GCPL Ratios

3
Highlights Q3 9M 2005-06

• Figures for GCPL only

4
Announcement

• Interim Dividend

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Dividend (2005-06)

• Third Interim Dividend announced
• Dividend per share Rs.3.00
• Dividend 75
• Total outlay (including tax on Rs.19.3 Cr
  distributed profits)
• Dividend till date for 2005-06 225
• Dividend payout YTD PAT 64

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Business Highlights
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Business Highlights

• Industry Scenario
• Uptrend in the FMCG sector continues
• Vegetable oil prices at reasonable levels
• Rupee has strengthened vis a vis the USD Euro

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Business Highlights

• Soap
• GCPL brands grew 12 in value terms in Q3
  2005-06
• Higher advertising costs for brand building

• Personal Care
• Hair colour registers strong growth of 24 in
  value terms
• Talcum Powder and Shaving Cream register good
  growth
• Snuggy Diapers record healthy growth over last
  year
• Strong winter benefits Liquid Detergents
  business

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Acquisition Update
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• Acquisition
• GCPL acquired 100 ownership interest in Keyline
  Brands Limited, an admired FMCG Company in UK
• Owns valuable brands like Cuticura, Erasmic and
  Nulon
• CY 2004 Financial Summary
• Sales GBP 16.7 Mio
• Profit Before Tax GBP 2.2 Mio

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• Keyline Brands Limited Nov-Dec05 Performance
• Sales (Nov Dec 2005) GBP 1.9 Mio
• Profits on consolidation take into account one
  time financial costs related to the acquisition
• Sales during Nov-Dec05 lower due to a seasonal
  pattern of sales

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Summarised Profit Loss Account (Consolidated)
Rs.Crore
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Sales Highlights
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Sales Growth vs Industry GrowthOct-Dec 05 vs
Oct-Dec04
Industry GCPL
(ORG offtake)
Shipment Toilet Soaps 3 12
Hair Colours 27 24

All figures shown are change for All India
Value Source Industry data ORG MARG
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Market share
Oct-Dec05 Oct-Dec04
Toilet Soaps 9.5
8.3 Hair Colours 40.5
40.0
All figures shown are for All India Value
MS Source ORG MARG
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Segmental data (Q3 9M 2005-06)
Rs Crore
Rs.Crore Segment Revenue Q3 05-06
Q3 04-05 9M 05-06 9M 04-05 Soap
88.6 86.7 311.5 277.7 Personal
Care 80.5 66.3 181.7 146.5
Unallocated income - -
- - Total
169.1 153.0
493.2 424.2 PBIT Soap
6.9 6.8 38.1 26.5 Personal Care
36.4 27.4 77.6
56.6 Segment PBIT 43.3 34.2
115.7 83.1 Less Interest (Net)
1.1 0.9 2.9 2.4
Less other unallocated exp 2.7 4.3
14.1 13.3 PBT 39.5
29.0 98.8 67.4
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Segmental data (Q3 and 9M 2005-06)
Rs.Crore Rs Crore Segment Capital Employed
Q3 05-06 Q3 04-05 9M 05-06 9M 04-05
Soap 44.2 49.8 44.2
49.8 Personal Care
8.5 19.0 8.5
19.0 Unallocated 48.9 26.3
48.9 26.3
Total 101.6 95.1
101.6 95.1 Includes Contract
Manufacturing
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Category-wise Turnover Q3 2005-06
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Sales-Mix Q3 - 2005-06

By-Products (Rs.3.6 cr) (2)
Liquid Detergent (Rs.31.2 cr) (18)
Godrej Brand Toilet Soaps (Rs.85.5 cr) (52)
Toiletries (Rs. 7.6 cr) (4)
Hair Colours (Rs.41.1 cr) (24)
Contract Mfg (Rs.0.1 cr) (0)
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Category-wise Turnover 9M 2005-06
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Sales-Mix 9M - 2005-06

Liquid Detergent (Rs.35.3 cr) (7)
By-Products (Rs.11.4 cr) (2)
Toiletries (Rs.25.0 cr) (5)
Godrej Brand Toilet Soaps (Rs.294.2 cr) (60)
Hair Colours (Rs.119.5 cr) (24)
Contract Mfg (Rs.7.8 cr) (2)
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GCPL Financials
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Summarised Profit Loss Account
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Balance Sheet
Rs.Crore
Liabilities Assets
31-12-05 30-09-05
31-12-05 30-09-05 Equity Capital
22.6 22.6 Net Fixed Assets
79.0 95.1 Reserves
74.9 58.1 Cash Bank Bal
6.8 12.5 Debt (2.3) (1.4) Sh
Term Inv 12.8 16.0 Def Tax Liability
6.4 6.9 Inv in Subsidiaries
48.5 0.0 Net Current
Assets (45.5) (37.4) Total
101.6 86.2 Total
101.6 86.2
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Funds Flow
Rs Crore
Q3 05-06 9M 05-06 SOURCES Internal
Accruals 38.8 99.2 W.Capital
change 7.6 29.8 Total 46.4
129.0 APPLICATION Debt Repayment
0.9 8.4 Capital Expenditure (13.4)
(14.3) Change cash/ sh term investments
(8.9) 10.7 Shares Buyback 0.0
4.8 Change in Investment 48.5
48.5 Dividend 19.3
70.9 Total 46.4 129.0
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Cost Structure (Q3 2005-06)
Rs.Crore
Rs Crore Q3 05-06 of Sales
Q3 04-05 of sales
Materials cost 72.4 42.8
72.1 47.1 Staff Cost 10.6 6.3
8.1 5.3 Advtg Publicity
15.0 8.9 12.3 8.0 Other Expenditure
30.7 18.1 28.2 18.5 Interest
Financial Charges 1.1 0.6 0.9
0.6 Depreciation 2.7 1.6
2.8 1.8 Provision for Taxation
3.4 2.0 3.0 1.9 PAT
36.1 21.3 26.0 17.0 Sales 169.1
100.0 153.1
100.0 Other Income 2.9 1.7
0.3 0.2
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Cost Structure (9M 2005-06)
Rs Crore
Rs Crore 9M 05-06 of Sales
9M 04-05 of sales
Materials cost 232.7 47.2 211.2
49.8 Staff Cost 31.0 6.3 23.4
5.5 Advtg Publicity 37.6 7.6
30.8 7.3 Other Expenditure
90.2 18.3 82.4 19.4 Interest Financial
Charges 2.9 0.6 2.4
0.6 Depreciation 8.2 1.7
8.0 1.9 Provision for Taxation
7.8 1.6 6.6 1.6 PAT 91.0
18.5 60.8 14.3 Sales
493.2 100.0 424.2
100.0 Other Income 8.0 1.6
1.4 0.3
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GCPL Ratios
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GCPL Ratios
Q3 05-06 Q3 04-05 9M 05-06 9M 04-05
PBDIT / Sales 25.6 21.4 22.3 18.3 PBT
/ Sales 23.3 18.9 20.0 15.9 PAT /
Sales 21.3 17.0 18.5 14.3
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GCPL Ratios contd..
Q3 05-06 Q3 04-05 9M 05-06 9M
04-05 NWC / Sales (days) (24)
(18) (25) (20) Fixed Asset T/o
Ratio 8.6 5.9 8.3 5.5 Total
Asset T/o Ratio 6.5 6.4 6.3
5.9 ROCE 160 126 133
98 RONW 148 143
124 112 EPS (on Rs.4 Share) 25.6
18.4 21.5 14.3
All figures are annualised
On closing Capital Employed Closing Networth
31
Thank You