Godrej Industries reported a 31 percent growth in its consolidated profits and a 3 percent decline in revenues in the quarter ended June 30. Speaking to CNBC-TV18, Godrej Group’s Chairman Adi Godrej said that the growth is difficult in these tough times but he is hopeful of a better performance in the second half of the year.

“In GCPL in Q1 the volume growth was ahead of value growth. So volume growth has been quite good and we have been doing reasonably well. However, generally there is a slowdown in demand and that is definitely affecting the economy. The entire FMCG sector is affected,” Godrej said on Wednesday.

On the recovery in volumes, Godrej said, “It is difficult to tell, it depends on the general economy.”

About investing the money raised via QIP, he said, “We are putting in money. In fact, a lot of developers are approaching us to take over their projects because they are facing financial difficulties. So, we are going to keep on investing.”

On revival of the economy, Godrej said, “The government should realize that over the decades, higher rates of taxes have never been very successful in India. Lower rates of taxes yield to faster economic growth and that leads to greater revenue collection also. These high rates of taxes brought in this budget I think is counterproductive.”