Godrej Consumer Products Limited

Q2 Financial Update

15 October 200115 October 2001

Quarterly update Quarterly update

Q2/H1 Q2/H1 2001-022001-02

Godrej Consumer Products LimitedGodrej Consumer Products Limited

2Godrej Consumer Products Limited

Q2 Financial Update

ContentsContents

• HighlightsHighlights

• AnnouncementsAnnouncements

• Business InitiativesBusiness Initiatives

• Key FinancialsKey Financials

• Key RatiosKey Ratios

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Q2 Financial Update

Highlights Q2 01-02Highlights Q2 01-02

Q2 01-02 H1 01-02Q2 01-02 H1 01-02

Sales Growth (own Brands)Sales Growth (own Brands) 6 % 6 % 15% 15%

(01-02 vs 00-01)(01-02 vs 00-01)

Rs.CroreRs.Crore

PBTPBT 15.7 15.7 29.6 29.6

EVAEVA 7.2 7.2 13.7 13.7

Reduction in DebtReduction in Debt 9.8 9.8 44.2 44.2

Maintained Negative Working CapitalMaintained Negative Working Capital

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Q2 Financial Update

• Interim DividendInterim Dividend

• Shares Buy-backShares Buy-back

AnnouncemenAnnouncementsts

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Maiden Interim DividendMaiden Interim Dividend

Q2 01-02Q2 01-02

Interim Dividend (%)Interim Dividend (%) 50.0%50.0% Dividend per Share Rs. Dividend per Share Rs. 2.00 2.00 (on face value of Rs.4 Share)(on face value of Rs.4 Share)

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Q2 Financial Update

Shares Buy-backShares Buy-back

• Current guidelines expected to be relaxedCurrent guidelines expected to be relaxed

• In-principle clearance by the BoardIn-principle clearance by the Board

• Committee appointed to examine further and Committee appointed to examine further and

take decision subject to a ceiling of Rs.100 per take decision subject to a ceiling of Rs.100 per

share and a maximum outlay of Rs.10 Croreshare and a maximum outlay of Rs.10 Crore

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Business InitiativesBusiness Initiatives

• EVA Implementation complete across the EVA Implementation complete across the

organisation. Measurement & Remuneration organisation. Measurement & Remuneration

based on EVAbased on EVA

• Red & Blue Team Project complete. 3 year Red & Blue Team Project complete. 3 year

strategy being implementedstrategy being implemented

• Young Executive Board constitutedYoung Executive Board constituted

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Q2 Financial Update

Marketing/Sales InitiativesMarketing/Sales Initiatives

• Rural initiatives driven down to more districtsRural initiatives driven down to more districts

• Strategic focus on use of internet for brand Strategic focus on use of internet for brand

building. New initiative with CINTHOL FRESH building. New initiative with CINTHOL FRESH

ZONE on www.indiatimes.comZONE on www.indiatimes.com

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Q2 Financial Update

Category HighlightsCategory Highlights

Personal CarePersonal Care

• Sales growth ahead of industrySales growth ahead of industry

• Toilet Soaps grew by 7% far ahead of Toilet Soaps grew by 7% far ahead of

industry which had a negative growthindustry which had a negative growth

• Driven by Godrej No.1 with 415% growthDriven by Godrej No.1 with 415% growth

• Cinthol given new positioning and Cinthol given new positioning and

communicationcommunication

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Q2 Financial Update

Category Highlights Category Highlights (contd . . )(contd . . )

Hair CareHair Care

• Hair Colour products grew by 16%Hair Colour products grew by 16%

• Portfolio extension with launch of Portfolio extension with launch of

COLOURGLOSS After Colour shampooCOLOURGLOSS After Colour shampoo

• Increased focus on salon activity and retail Increased focus on salon activity and retail

visibility for COLOURSOFT Hair Colourvisibility for COLOURSOFT Hair Colour

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Q2 Financial Update

Source : ORG Data

Godrej IndustryToilet Soaps 4.6% -10.9%Hair Colour 17.1% 8.8%Detergents -8.7% -23.9%Fairness Creams 321.3% 2.4%Shaving Cream -5.6% 1.4%Talcum Powder -16.2% -0.7%All figures are %age of Value Offtake growth

Off-take GrowthOff-take GrowthAug ‘01 vs Aug ‘00Aug ‘01 vs Aug ‘00

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Q2 Financial Update

Market SharesMarket Shares

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

Aug-01 Aug-00Toilet Soaps 5.7 5.4Hair Colour 43.9 40.1Liquid Detergent 68.1 58.0Shaving Cream 10.5 11.4Fairness Cream 3.4 1.1Talcum Powder 1.5 2.1

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Q2 Financial Update

Category-wise Turnover Q2Category-wise Turnover Q2

Q2 01-02 Q2 00-01** Growth

%Toilet Soaps 66.2 61.7 7%Hair Colour 24.8 21.4 16%Detergents 2.3 2.0 17%Toiletries 8.9 11.0 -19%Total Godrej Brands 102.2 96.1 6%

Contract Mfg 10.4 13.1 -21%

Total Sales 112.6 109.2 3%

Rs. Crore

** As a part of Godrej Soaps Limited

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Q2 Financial Update

9%

2%

22%

8%

59%

Sales Mix Sales Mix Q2 01- 02Q2 01- 02

Godrej Brand Toilet Soaps

(Rs.66.2cr)

Contract Mfg(Rs.10.4 cr)

Liquid Detergents(Rs. 2.3cr)

Hair Colour

(Rs.24.8 cr)

Toiletries

(Rs. 8.9 cr)

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Q2 Financial Update

Category-wise Turnover H1Category-wise Turnover H1

H1 01-02 H1 00-01** Growth

%Toilet Soaps 132.6 115.7 15%Hair Colour 52.6 43.3 22%Detergents 2.6 2.7 -4%Toiletries 19.2 17.7 9%Total Godrej Brands 207.0 179.4 15%

Contract Mfg 45.9 33.7 36%

Total Sales 252.9 213.1 19%

Rs. Crore

** As a part of Godrej Soaps Limited

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Q2 Financial Update

18%

1%

21%

8%

52%

Sales Mix Sales Mix H1 01- 02H1 01- 02

Godrej Brand Toilet Soaps

(Rs.132.6cr)

Contract Mfg(Rs.45.9 cr)

Liquid Detergents(Rs. 2.6cr)

Hair Colour

(Rs.52.6 cr)

Toiletries

(Rs. 19.2 cr)

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Q2 Financial Update

ExportsExports

• Exports continued to grow at 27%Exports continued to grow at 27%

• Presence in 30 countriesPresence in 30 countries

Q2Q2 H1H1

• Total exports revenueTotal exports revenue -- 2.12.1 3.4 3.4(Rs. (Rs.

Crore)Crore)

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Q2 Financial Update

FinancialsFinancials

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Q2 Financial Update

Summarised Profit & Loss AccountSummarised Profit & Loss AccountRs Crore

Q2 01-02Q2 01-02 H1 H1 01-0201-02

SalesSales 112.6112.6 252.9252.9Other Operating IncomeOther Operating Income 6.9 6.9 9.5 9.5Other IncomeOther Income 0.5 0.5 0.6 0.6ExpenditureExpenditure 100.9100.9 226.3226.3PBDITPBDIT 19.1 19.1 36.7 36.7DepreciationDepreciation 2.3 2.3 4.6 4.6InterestInterest 1.1 1.1 2.5 2.5 PBTPBT 15.7 15.7 29.6 29.6

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Q2 Financial Update

Balance Sheet Balance Sheet

LiabilitiesLiabilities AssetsAssets

1-4-01 30-9-01 1-4-01 30-9-01

Equity Capital 23.9 23.9 Net Fixed Assets 99.1 95.7

Reserves 24.8 44.8 Net Current Assets 19.1 (1.7)

Debt 69.5 25.3

Total 118.2 Total 118.2 94.0 Total 118.2 94.0 94.0 Total 118.2 94.0

Rs.Crore

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Funds Flow Funds Flow Rs

Crore

Q2 01-02 H1 01-02Q2 01-02 H1 01-02SOURCESSOURCESInternal AccrualsInternal Accruals 13.013.0 24.5 24.5TotalTotal 13.013.0 24.5 24.5

APPLICATIONAPPLICATIONDebt ReductionDebt Reduction 9.8 9.8 44.2 44.2Capital ExpenditureCapital Expenditure 0.8 0.8 1.1 1.1W.Capital changeW.Capital change 2.4 2.4 (20.8) (20.8)TotalTotal 13.013.0 24.5 24.5

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Q2 Financial Update

Cost StructureCost StructureRs Crore

Q2 % of Sales H1 % of Sales

Materials costMaterials cost 46.3 46.3 41.1%41.1% 111.4 111.4 44.0%44.0%

Staff CostStaff Cost 4.8 4.8 4.3% 4.3% 9.3 9.3 3.7% 3.7%

Excise DutiesExcise Duties 14.0 14.0 12.5%12.5% 30.2 30.2 11.9%11.9%

Advtg & Sales Promotion 15.9Advtg & Sales Promotion 15.9 14.1% 36.314.1% 36.3 14.4%14.4%

Other ExpenditureOther Expenditure 19.8 19.8 17.6%17.6% 39.1 39.1 15.5% 15.5%

Interest & Financial Charges 1.1Interest & Financial Charges 1.1 0.9% 0.9% 2.5 2.5 1.0% 1.0%

DepreciationDepreciation 2.3 2.3 2.1% 2.1% 4.6 4.6 1.8% 1.8%

Provision for TaxationProvision for Taxation 5.1 5.1 4.5% 4.5% 9.7 9.7 3.8% 3.8%PATPAT 10.7 10.7 9.5% 9.5% 19.9 19.9 7.9% 7.9%

SalesSales 112.6 100.0% 112.6 100.0% 252.9 100.0% 252.9 100.0%

Other Operating Income 6.9Other Operating Income 6.9 6.1% 6.1% 9.5 9.5 3.8% 3.8%

Other IncomeOther Income 0.5 0.5 0.5% 0.5% 0.6 0.2% 0.6 0.2%

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Q2 Financial Update

Key RatiosKey Ratios

Rs Crore

Q2 01-02Q2 01-02

H1 01-02H1 01-02

PBDIT / SalesPBDIT / Sales 17.0% 17.0% 14.5% 14.5%

PBT / SalesPBT / Sales 14.0% 14.0% 11.7% 11.7%

PAT / SalesPAT / Sales 9.5% 9.5% 7.9% 7.9%

Interest / SalesInterest / Sales 0.9% 0.9% 1.0% 1.0%

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Key Ratios Key Ratios contd..contd..

All figures are annualised

Rs Crore

Q2 01-02Q2 01-02H1 01-02H1 01-02

NWC / Sales (days)NWC / Sales (days) -1.4-1.4 -1.3 -1.3Fixed Asset T/o RatioFixed Asset T/o Ratio 4.7 4.7 5.3 5.3 Total Asset T/o RatioTotal Asset T/o Ratio 4.8 4.8 5.4 5.4ROCEROCE 71.6% 71.6% 68.4% 68.4%RONWRONW 62.1% 62.1% 57.9% 57.9%EPS (on Rs.4 Share)EPS (on Rs.4 Share) 7.1 7.1 6.6 6.6

Godrej Consumer Products Limited

Q2 Financial Update

Thank YouThank You