Godrej Industries delivers strong Q3 on chemicals, real estate push
Godrej Industries Limited has reported a remarkable 76.9% year-on-year (YoY) growth in net profit for the third quarter of the financial year 2024, with earnings surging to ₹188.2 crore from ₹106.4 crore in the corresponding quarter of the previous year. The company’s revenue from operations saw a strong 34.4% increase, reaching ₹4,824.8 crore, propelled by stellar performance in its chemicals and real estate segments. On the operational front, EBITDA soared by an impressive 113.75% YoY to ₹596.8 crore, with margins expanding to 12.4% from 7.8% in Q3FY24. However, despite these robust numbers, shares of Godrej Industries closed 3.08% lower at ₹812.10 on the BSE, reflecting broader market movements and investor reactions.
Segmental performance: Chemicals and real estate lead growth
The chemicals business stood out as the primary driver of profitability, posting an impressive 44% YoY revenue growth and a 266% surge in profit before interest and taxes (PBIT) for Q3. This segment also witnessed a 58% rise in exports, accounting for nearly 30% of total revenue, reinforcing the company’s strategic global expansion. Meanwhile, Godrej Properties Ltd continued its streak of high bookings, recording a ₹5,446 crore booking value for Q3FY25, marking the sixth consecutive quarter of over ₹5,000 crore in sales. The company also added four new projects spanning 5.9 million square feet with an estimated booking value of ₹10,800 crore, underlining its aggressive expansion strategy.
On the consumer front, Godrej Consumer Products Ltd (GCPL) faced headwinds, registering a 14% decline in consolidated net profit, impacted by seasonal weakness in its home care division. However, air fresheners and fabric care witnessed strong double-digit volume growth, offering optimism for future recovery. The personal care segment also saw mixed trends, with hair colour volumes expanding in mid-single digits, supported by strong performance in the Godrej Expert Rich Crème range.
Sustainability-driven growth amid market challenges
Godrej Industries’ strategic emphasis on sustainability has been integral to its operational success. The chemicals business’ export growth aligns with the company’s efforts to adopt eco-friendly manufacturing practices, reducing waste and emissions. Similarly, in the real estate sector, Godrej Properties has been at the forefront of green building initiatives, ensuring that new developments incorporate energy-efficient designs and sustainable construction materials. The company’s investment in research and innovation to improve crop yield efficiency in Godrej Agrovet further reflects its commitment to sustainable business operations.
Outlook: Strengthening core businesses for long-term growth
As Godrej Industries navigates the evolving economic landscape, strategic capital infusion and business diversification will play a key role in sustaining momentum. The company’s ₹6,000 crore equity growth capital raised through India’s largest QIP in the real estate sector provides significant leverage for future expansions. With strong performance in chemicals, promising project additions in real estate, and continued focus on sustainability, the company remains well-positioned for steady growth. However, consumer goods volatility and macroeconomic uncertainties could pose short-term challenges, requiring agile strategies and prudent capital allocation. Investors will keenly watch for stabilisation in GCPL’s performance and continued growth in real estate and chemicals, which will shape the company’s trajectory in the coming quarters.
