Quarterly Update: Q2 2009-10

SoapsHair

ColoursLiquid

DetergentsToiletries

Household Insecticides

& Others

InternationalOperations

Contents

• Performance Highlights - Consolidated

• Business Review - Domestic

• GCPL Financials & Ratios - Stand Alone

• International Operations

Performance Highlights – Q2 2009-10

• Acquisition of 49% stake in Godrej Sara Lee Limited (GSLL) completed

• Topline growth of 65% after consolidation of Rs.139.7 crore of GSLL sales:– Strong growth in GCPL domestic business at 27% – International business grew at 22% despite recession

• PBDIT margins improve by 800 bps

• Consolidated PAT improves significantly to Rs.93 crore with 168% growth

• Significant increase in soap market share from 9.6% in exit FY09 to 10.9% in September 2009

• Highest ever soap market share for GCPL

• Hair Colour market share for September 2009 is 34.7% as against 33.7% in March 2009

PAT (Rs. Crore)

93.0

34.7

162.7

73.8

0

50

100

150

200

Q2 0910 Q2 0809 H1 0910 H1 0809

PBT (Rs. Crore)

116.5

42.8

204.1

91.5

0

50

100

150

200

250

Q2 0910 Q2 0809 H1 0910 H1 0809

PBDIT (Rs. Crore)

112.9

42.9

200.1

95.9

0

50

100

150

200

250

Q2 0910 Q2 0809 H1 0910 H1 0809

Financial Highlights - Consolidated

Net Sales (Rs. Crore)

575.6

348.1

1014.4

711.0

0

250

500

750

1000

1250

Q2 0910 Q2 0809 H1 0910 H1 0809

65% 163%

172%

168%

43% 109%

123%

120%

Financial Highlights - Consolidated

EPS (Annualised Rs.)

12.1

5.4

11.2

5.9

0.0

5.0

10.0

15.0

Q2 0910 Q2 0809 H1 0910 H1 0809

89% 124%

Ratios - Consolidated

Consolidated Q2 0910 Q2 0809 H1 0910 H1 0809

A&P / Sales 9% 7% 9% 8%

PBDIT / Sales 20% 12% 20% 13%

PBT / Sales 20% 12% 20% 13%

PAT / Sales 16% 10% 16% 10%

• Quarterly PBDIT margin improves by 800 bps• Increased A&P spends towards brand building initiatives - A&P

increased by 109% to Rs.50.9 crore as compared to Rs.24.4 crore in Q2 0809.

• Tax rate higher on account of higher MAT rate on domestic operations

Q2 FY 09-10 Sales Mix (Consolidated)

Soaps41%

By Products1%

Liq. Dets1%

Toileteries19% Hair Colour

14%

HI* & Others24%

* HI – Household Insecticides

Business Review - Domestic

Q2 FY 2009-10

Q2 FY 2009-10 Scenario: Domestic

• Industry Scenario– FMCG sector growth continues to be strong– Vegetable oil prices are at lower levels as compared to FY 0809.– Rupee strengthened versus the USD in Q2 2009-10

• GCPL Performance

Industry Growth(AC Nielsen Off Take)

GCPL Standalone(Sales Growth)

Q2 ‘0910 Q2 ‘0910

Toilet Soaps 12.1% 28.2%

Hair Colours 19.6% 47.5%

*Off take in value terms @ MRP

Q2 Highlights

• Soaps– Significant increase in market share; market share for Sep 2009 is

10.9% as against 9.6% in March 2009– Highest ever soap market share for GCPL– Cinthol Regular launched in a small pack at Rs.6– Godrej No.1 crosses Rs.500 crore to strengthen its position as India’s

third largest soap brand– Godrej No.1 attained leadership in value market share in North in

August 2009– Godrej No.1 attained leadership in volume & value market share in

Uttar Pradesh, Punjab, Haryana ,Uttarnachal and Himachal Pradesh – Godrej No.1 attained leadership in volume market share in Delhi and

Gujarat .

• Hair Colours– Market share for Sep 2009 is 34.7% as against 33.7% in March 2009

Soaps – Industry Growth & GCPL Growth

12%11%13%

16%

28%27%

46%

22%

0%

10%

20%

30%

40%

50%

60%

OND '08 JFM '09 AMJ '09 JAS '09

Industry Growth GCPL Growth

Hair Colour – Industry Growth & GCPL Growth

19%

14%13%

18%

47%

20%20%

14%

0%

10%

20%

30%

40%

50%

60%

OND '08 JFM '09 AMJ '09 JAS '09

Industry Growth GCPL Growth

GCPL Market Share Value Trend - Total

9.6 10.9

33.7 34.7

0

5

10

15

20

25

30

35

40

Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09

Val

ue M

arke

t Sh

are

(%)

Soaps

Hair Colours

GCPL Market Share Value Trend - Rural

8.7 10.0

40.944.2

0

5

10

15

20

25

30

35

40

45

50

Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09

Val

ue M

arke

t Sh

are

(%)

Soaps

Hair Colours

Key Q2 Initiatives

• Focused approach to brand portfolio

• Significant increase in rural reach

• Strong innovations in both soap & hair colour

• Substantial increase in brand investment

• Strong cost effectiveness & productivity improvement program

• Building a “brighter” organization to drive growth

Events / Recognitions

• ICRA has reaffirmed LAA (pronounced L double A) rating to the Rs.60 million Fund Based Limits and Rs.100 million Non Fund Based Limits of Godrej Consumer Products Limited (GCPL). This is a high-credit-quality rating assigned by ICRA to long term debt instruments. The rated instrument carries low credit risk.

• ICRA has also reaffirmed the A1+ (pronounced A one plus) rating assigned to Rs. 240 million secured Short Term Fund based, Rs. 1,600 million secured Short Term Non-Fund based bank facilities and Rs. 200 million Short Term Debt (including Commercial Paper Programme) of GCPL.

• ICRA has also reaffirmed the A1+ rating assigned to Rs. 1,115 million unsecured Short Term Fund based and Rs. 1,300 million unsecured Short Term Non-Fund based bank facilities of GCPL.

• The rating of A1+ is the highest-credit-quality rating assigned by ICRA to short-term debt instruments. Instruments rated in this category carry the lowest credit risk in the short-term.

Godrej Sara Lee Limited (GSLL)

Rs. Crore H1 0910 *

Net Sales 139.7

PBT 26.7

Tax 5.1

PAT 21.6

Date of Acquisition of 49% stake: 01-Jun-2009

- In May 2009, the Board of directors of Godrej Consumer Products approved

the proposed acquisition of 49% stake in Godrej Sara Lee Limited

* Consolidated results of Godrej Consumer Products Limited include the

appropriate share of the results of Godrej Sara Lee Limited w.e.f June 1,

2009.

Financials & Ratios

GCPL Standalone

PAT (Rs. Crore)

68.5

32.3

128.8

66.5

0

40

80

120

160

Q2 0910 Q2 0809 H1 0910 H1 0809

PBT (Rs. Crore)

81.0

37.7

154.0

77.0

0

40

80

120

160

Q2 0910 Q2 0809 H1 0910 H1 0809

PBDIT (Rs. Crore)

65.7

31.7

133.8

70.0

0

50

100

150

200

Q2 0910 Q2 0809 H1 0910 H1 0809

Financial Highlights - Standalone

Net Sales (Rs. Crore)

329.7258.7

669.5

536.0

0

250

500

750

Q2 0910 Q2 0809 H1 0910 H1 0809

27% 107%

115%

112%

25% 91%

100%

94%

Q2 FY 09-10 Sales Mix (Standalone)

Soaps72%

Hair Colour19%

Liq. Dets1%

By-Prod's2%

Toileteries6%

Dividend – Q2 FY 09-10

• Q2 Dividend announced

Dividend per Share Re.1

Dividend % 100%

Total outlay (including tax on distributed profits) Rs.36.06 crore

Dividend % till date for 2009-10 200%

Dividend payout % YTD PAT (Standalone) 51.3%

Balance Sheet (Standalone)

Liabilities (Rs. Crore)Liabilities (Rs. Crore) 30-Sep-0930-Sep-09

Net Worth 832.67

Other Liabilities 4.89

Total 837.56

Assets (Rs. Crore)Assets (Rs. Crore) 30-Sep-0930-Sep-09

Net Fixed Assets 167.18

Investment in Subsidiaries 295.15

Investment – OtherCash & Bank Balance (including Rights investment of Rs.300.84 crore)Loans to subsidiary / others

43.90311.63

68.10

Net Working Capital (48.40)

Total 837.56

Net Working Capital

Rs. Crore Q2 0910

Inventory 130.3

Debtors 36.5

Loans & Advances 43.7

Current Assets 210.5

Liabilities (133.6)

Provisions (125.3)

Current Liabilities (258.9)

Net Working Capital

(48.4)

Funds Flow (Standalone)

Q2 09-10(Rs. Crore)

SOURCESSOURCES

Increase in share capitalInternal AccrualsCash & BankInvestment in Mutual Funds

5.12262.55

6.446.14

Total 280.25

APPLICATIONSAPPLICATIONS

Repayment of borrowings 10.04

Investment in subsidiaries 199.89

Dividend payoutWorking capital changes

30.0640.26

Total 280.25

Cost Structure (Standalone)

Amount in Rs. Crore

Q20910

% of Sale

s

Q20809

% of Sales

H1 0910

% of Sales

H10809

% of Sales

Material Cost 155.5 47.2% 155.6 60.1% 308.2 46.0% 313.2 58.4%

Staff Cost 39.2 11.9% 15.1 5.9% 69.7 10.4% 30.8 5.7%

Depreciation 3.9 1.2% 3.5 1.4% 7.8 1.2% 8.1 1.5%

Advt & Publicity 22.3 6.8% 10.7 4.1% 51.1 7.6% 32.8 6.1%

Other Expenses 47.0 14.2% 47.2 18.2% 106.8 15.9% 92.9 17.3%

Int & Fin. Chgs 0.7 0.2% 2.4 0.9% 2.4 0.4% 4.6 0.9%

Prov. for Tax 12.5 3.7% 5.4 2.1% 25.2 3.8% 10.5 2.0%

PAT 68.5 20.8% 32.3 12.5% 128.8 19.2% 66.5 12.4%

Net Sales 329.7 100.0%

258.7 100.0% 669.5 100.0% 536.0 100.0%

Total Other Income

19.9 6.0% 13.5 5.2% 30.4 4.5% 23.3 4.3%

Ratios - Standalone

Q2 0910 Q2 0809 H1 0910 H1 0809

A&P / Sales 7% 4% 8% 6%

PBDIT / Sales 20% 12% 20% 13%

PBT / Sales 25% 15% 23% 14%

PAT / Sales 21% 12% 19% 12%

NWC / Sales (days)

(13) (20) (13) (19)

Fixed Asset TO Ratio

7.9 5.8 8.01 5.9

ROCE 39% 26% 37% 26%

RONW 33% 24% 31% 24%

International Operations

Kinky Group Proprietary Ltd.

Godrej Global Mid-East FZE

Key Highlights of International Operations• Despite recession and tough operating conditions, international

business grew by 22% (in Rupee terms)

• South Africa businesses witnessed robust growth:– Rapidol grew by 25% (in ZAR)– Kinky grew by 31% (in ZAR)

• UK business (Keyline Brands) grew by 19% (in GBP)

Kinky Group (Pty) Limited - Performance*

Date of Acquisition: 01-Apr-2008

Rs. Crore Q2 0910 Q2 0809 H1 0910 H1 0809

Net Sales 18.47 12.75 34.7 23.63

PBIT 2.63 2.02 5.48 4.37

Interest 1.56 1.54 3.21 2.90

PBT 1.07 0.48 2.27 1.47

Tax 0.79 0.70 1.68 1.53

PAT 0.28 (0.22) 0.59 (0.06)

• Kinky Business grew at 31% (in Foreign Currency) over Q2 FY 2008-09

* Includes the results of Godrej Consumer Products Mauritius Limited (Mauritius) and its subsidiaries Godrej Kinky Holdings Limited (Mauritius) and Kinky Group (Proprietary)

Limited (South Africa)

Keyline Brands Limited – Performance*

• Business grew at 18.6% (in Foreign Currency) despite recession in the UK economy

• Cuticura brand grown by 2.3 times in Apr-Sept’ period with most growth coming from Hand Hygiene segment

• Cuticura Hand Hygiene Gel regains clear volume market leadership to become the top brand end beginning July’ 09

Date of Acquisition: 31-Oct-2005

Rs. Crore Q2 0910 Q2 0809 H1 0910 H1 0809

Net Sales 71.32 63.25 138.29 124.42

PBIT 12.25 4.93 23.27 15.58

Interest 0.27 1.01 0.63 1.90

PBT 11.98 3.92 22.64 13.68

Tax 3.86 1.44 7.21 4.56

PAT 8.12 2.48 15.43 9.12

* Includes the results of Godrej Netherlands BV (Netherlands) and its subsidiaries, Godrej Consumer Products (UK) Limited - (UK), Keyline Brands Limited - (UK) & Inecto

Manufacturing Limited - (UK)

Rapidol Pty Ltd – Performance

Rs. Crore Q2 0910 Q2 0809 H1 0910 H1 0809

Net Sales 16.59 11.99 30.56 23.56

PBIT 3.53 2.00 6.99 3.99

PBT 3.41 2.07 6.88 4.06

Tax 0.94 0.58 1.93 1.14

PAT 2.47 1.49 4.95 2.92

Date of Acquisition: 01-Sep-2006

• Business grew at 25.4% (in Foreign Currency) over Q2 FY 2008-09

Godrej Global Mid-East – Performance

Rs. Crore Q2 0910 Q2 0809 H1 0910 H1 0809

Net Sales 4.26 2.93 8.25 5.78

PBIT 0.25 0.14 0.47 0.19

PBT 0.20 0.10 0.38 0.13

PAT 0.20 0.10 0.38 0.13

Date of Acquisition: 01-Oct-2007

• Business grew at 34.4% (in Foreign Currency) over Q2 FY 2008-09• Godrej Expert Colors launched in UAE

Thank You