1. Godrej Consumer Products Limited Q1 FY 2004-05 Performance Update Godrej Consumer Products Limited 22 July 2004 Quarterly update Q1 2004-05

2. Godrej Consumer Products Limited Q1 FY 2004-05 Performance Update Contents Highlights Business Highlights Key Financials Key Ratios

3. Godrej Consumer Products Limited Q1 FY 2004-05 Performance Update Highlights Q1 2004-05 Highlights Q1 2004-05 Q1 ’04-05 Q1 ’03-04 Sales (own Brands) 129.5 21% 106.7 (net of excise) Contract Mfg 3.7 5.8 Total Sales 136.6 16% 117.9 Material Cost 71.5 61.6 A & P 14.0 36% 10.3 PBDIT 22.4 20% 18.7 PAT 17.3 25% 13.8 EVA 16.0 44% 11.1 EPS (Rs.) -annualised 12.2 27% 9.6 Amts in Rs. Crore Education Cess of 2% has been considered in Income Tax provision

4. Godrej Consumer Products Limited Q1 FY 2004-05 Performance Update Dividend (2004-05) First Interim Dividend announced  Dividend per share Rs.2.00  Dividend % 50%  Total outlay (including tax on Rs.12.8 Cr distributed profits) Dividend payout as a % of PAT 74.0% (Dividend payout has been taken incl distribution tax) Education Cess of 2% has been considered in Income Tax provision

5. Godrej Consumer Products Limited Q1 FY 2004-05 Performance Update Fifth buyback from open market at a price not exceeding Rs.200 per share at a total outlay of Rs.8.4 crore was approved by the Board in the meeting held on 31-Jan-04 - 200853 shares since bought back at an outlay of Rs 4.0 crore Status of Shares Buy-back

6. Godrej Consumer Products Limited Q1 FY 2004-05 Performance Update Business Highlights–Q1 2004-05 Industry Scenario Budget impact on the FMCG sector is neutral to positive Industry – rural demand likely to pick up due to trickle down effect of budget & – increase in the disposable income of people having taxable income below Rs.one lac

7. Godrej Consumer Products Limited Q1 FY 2004-05 Performance Update Soap GCPL brand soap sales grew 24% in Q1 2004-05 over Q1 2003-04 Nimin soap launched Godrej No.1 Jasmine variant launched Cinthol Deo soap well received by the market First soap line at Baddi plant fully operational Second line has been commissioned in Baddi in June ’04 Personal Care Hair colour sales grew 19% in Q1 2004-05 over Q1 2003-04 Business Highlights

8. Godrej Consumer Products Limited Q1 FY 2004-05 Performance Update Sales Growth vs Industry Growth Apr-June ‘04 vs Apr-June ‘03 Industry * GCPL Shipment Shipment Toilet Soaps 2% 24% Hair Colours 13% 19% * Source: ORG Data

9. Godrej Consumer Products Limited Q1 FY 2004-05 Performance Update Rs Crore Q1 04-05 Q1 03-04 Segment Revenue Q1 04-05 Q1 03-04 Soap 93.3 81.8 Personal Care 43.3 37.2 Unallocated income 0.0 0.0 Total 136.6 119.0 PBIT Soap 7.6 4.2 Personal Care 17.8 16.0 Segment PBIT 25.4 20.2 Less Interest (Net) 0.7 0.6 Less other unallocated expenses 5.5 3.8 PBT 19.2 15.8 Segmental data (Q1 2004-05)

10. Godrej Consumer Products Limited Q1 FY 2004-05 Performance Update Segmental data (Q1 2004-05) Rs Crore Q1 04-05Q1 03-04 Segment Capital Employed Q1 04-05 Q1 03-04 Soap * 41.6 30.7 Personal Care 22.1 22.0 Unallocated 14.2 21.9 Total 77.9 74.6 * Includes Contract Manufacturing

11. Godrej Consumer Products Limited Q1 FY 2004-05 Performance Update Category-wise Turnover Q1 2004-05 Rs Crore Q1 04-05Q1 03-04 Growth % Turnover (net of Excise) Q1 04-05 Q1 03-04 Growth % Toilet Soaps86.970.1 24% Hair Colours35.029.3 19% Liquid Detergents 0.9 0.8 10% Toiletries 6.8 6.5 4% Total Godrej Brands 129.5 106.7 21% Contract Mfg 3.7 5.8(36%) By-Products 3.4 5.4 (38%) Total Sales 136.6 117.9 16%

12. Godrej Consumer Products Limited Q1 FY 2004-05 Performance Update Sales-Mix Q1 - 2004-05 Godrej Brand Toilet Soaps (Rs.86.9 cr) (63%) Contract Mfg (Rs.3.7 cr) (3%) Liquid Detergent (Rs.0.9cr) (1%) Hair Colours (Rs.35.0 cr) (26%) Toiletries (Rs. 6.8 cr) (5%) By-Products (Rs.3.4 cr) (2%)

13. Godrej Consumer Products Limited Q1 FY 2004-05 Performance Update Financials

14. Godrej Consumer Products Limited Q1 FY 2004-05 Performance Update Summarised Profit & Loss Account Rs Crore Q1 04-05 Q1 03-04 Q1 04-05 Q1 03-04 Sales (Net of Excise) 136.6 117.9 16% - Godrej Brands 129.5 106.7 21% - Contract Mfg 3.7 5.8 - By-products 3.4 5.4 Processing charges 0.0 1.1 Other Income 0.1 0.2 Expenditure 114.2 100.5 PBDIT 22.4 18.7 20% Depreciation 2.5 2.3 Interest 0.7 0.6 PBT 19.2 15.8 21% PAT 17.3 13.8 25% Education Cess of 2% has been considered in Income Tax provision

15. Godrej Consumer Products Limited Q1 FY 2004-05 Performance Update Balance Sheet Balance Sheet Liabilities Assets 30-06-04 31-03-04 30-06-04 31-03-04 Equity Capital 22.7 22.7 Net Fixed Assets 106.1 104.0 Reserves 33.0 19.6 Cash & Bank Bal 6.814.0 Debt 14.2 24.2 Investments 0.0 0.0 Def Tax Liability 8.0 7.6 Net Current Assets (35.0) (24.7) Dividend payable 0.0 (19.2) Total 77.9 74.1 Rs.Crore Education Cess of 2% has been considered in Income Tax provision

16. Godrej Consumer Products Limited Q1 FY 2004-05 Performance Update Rs Crore Q1 04-05 SOURCES Internal Accruals 19.8 Total 19.8 APPLICATION Debt reduction 10.0 Capital Expenditure 4.6 W.Capital change (10.8) Change in cash & investments (7.2) Shares Buyback 4.0 Dividend 19.2 Total 19.8 Funds Flow Funds Flow Education Cess of 2% has been considered in Income Tax provision

17. Godrej Consumer Products Limited Q1 FY 2004-05 Performance Update Cost Structure (Q1 2004-05) Rs.Crore Rs Crore Q1 ’04-05 %of Sales Q1 ’03-04%of sales Materials cost 71.552.4% 61.652.2% Staff Cost 7.7 5.6% 5.7 4.8% Advtg & Sales Promotion 14.010.2% 10.3 8.7% Other Expenditure 21.015.4% 22.919.4% Interest & Financial Charges 0.7 0.5% 0.6 0.5% Depreciation 2.5 1.8% 2.3 2.0% Provision for Taxation 1.9 1.4% 2.0 1.7% PAT 17.312.7% 13.811.7% Sales 136.6 100.0% 117.9 100.0% Processing charges 0.0 0.0% 1.1 0.9% Other Income 0.1 0.1% 0.2 0.1% Education Cess of 2% has been considered in Income Tax provision

18. Godrej Consumer Products Limited Q1 FY 2004-05 Performance Update Key Ratios Q1 04-05Q1 03-04 PBDIT / Sales 16.4% 15.9% PBT / Sales 14.1% 13.4% PAT / Sales 12.7% 11.7% Education Cess of 2% has been considered in Income Tax provision

19. Godrej Consumer Products Limited Q1 FY 2004-05 Performance Update Key Ratios contd.. Q1 04-05 Q1 03-04 NWC / Sales (days) (23) (22) Fixed Asset T/o Ratio 5.2 5.1 Total Asset T/o Ratio 7.0 6.1 ROCE* 102.2% 90.9% RONW* 124.4% 98.2% EPS (on Rs 4 Share) 12.2 9.6 All figures are annualised * On closing Capital Employed & Closing Networth Education Cess of 2% has been considered in Income Tax provision

20. Godrej Consumer Products Limited Q1 FY 2004-05 Performance Update Thank You