Godrej Consumer Products announced its Q4FY20 earnings, which showed a huge drop in net profit, yet the stock price has remained stoic and steady among the gainers.
The stock opened almost 3% lower at Rs.519.90 but from there, surged over 6% to Rs.567.60 and continues to remain in the green, up over 5% at Rs.560 levels.
The company, for Q4FY20, posted a 75% (YoY) drop in its consolidated net profit at Rs.230 crore on a 12% fall in net sales at Rs.2133 crore, impacted by the Covid, which has affected all its geographies.
Its India business sales declined 18%, led by 15% decline in volume.
The company said, "As per our current assessment, other than the impairment recorded, no significant impact on carrying amounts of inventories, goodwill, intangible assets, trade receivables, investments and other financial assets is expected, and we continue to monitor changes in future economic conditions. The eventual outcome of the impact of the global health pandemic may be different from those estimated as on the date of approval of these financial results."
The company ended FY20 with a 36% drop in net profit at Rs.1496 crore on a 4% fall in net sales at Rs.9826 crore.