Stocks of FMCG companies are trading weak with United Spirits, ITC and REI Agro leading the pack of underperformers. As per a leading financial daily, Godrej Consumer Products(GCPL) has commenced the third and final phase of expansion in Africa. According to the company, it is growing in excess of 25-30% in Africa and the completion of the third phase in a year is expected to contribute additional revenues of Rs 3.8 bn to group turnover. GCPL has acquired companies in Asia, Africa, South America and Europe to expand presence in the overseas market. The company currently derives around 40% of its revenues from outside India. In Africa, the company has acquired the pan African hair care business of the Darling group and Tura in Nigeria. Through the Darling group, the company has operations in six countries in Africa namely South Africa, Mozambique, Nigeria, Uganda, Kenya and Tanzania. In FY12, Africa contributed 23% to GCPL's international business revenues.
Bajaj Electricals announced its results for the quarter ended September 2012 recently. The company reported a revenue growth of 5% YoY during the quarter. Growth was led by the company's consumer durables and lighting businesses which grew by 23% YoY and 12% YoY respectively. The company's engineering and products (E&P) business witnessed a revenues decline of about 11% YoY during 2QFY13. Further, the company's operating profits declined by 55% YoY as operating margins declined to 3.3% from 7.7% earlier. The performance of the E&P division seems to have been the main culprit for the decline in margins as the segment suffered losses at the earnings before interest and tax (EBIT) level. As for the profits, the same grew by 8% YoY on the back of an extraordinary income. On excluding the same, profits are lower by 80% YoY. As for the 1HFY13 performance, Bajaj Electricals' profits grew by 8% YoY while revenues were higher by 12% YoY.