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Godrej Consumer: Steady Quarter - Views on News from Equitymaster
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Godrej Consumer: Steady Quarter
May 23, 2016

Godrej Consumer Products (GCPL) declared results for the quarter and year ended March 2016. The company's consolidated revenues were up by 9% YoY during the quarter, while profits grew by 17% YoY. Here is our analysis of the results:

Performance summary
  • Revenues rise by 9% YoY during quarter.
  • Operating profits rise by 14% YoY as margins expand to 19.5% from 18.6% last year.
  • Net profits up by 17% YoY during the quarter.
  • For full year FY16, revenues and profits rise by 8% YoY and 23% YoY respectively.
  • Board declares fourth interim dividend of Rs 2.75 per share. Full year dividend stands at Rs 5.75 (yield of 0.4%)

    Consolidated Financial Snapshot
    (Rs m) 4QFY15 4QFY16 Change FY15 FY16 Change
    Net sales 20,920 22,691 8.5% 82,764 89,678 8.4%
    Expenditure 17,021 18,255 7.3% 69,047 73,437 6.4%
    Operating profit (EBIDTA) 3,899 4,436 13.8% 13,716 16,242 18.4%
    EBDITA margin (%) 18.6% 19.5% 16.6% 18.1%
    Other income 175 143 -18.2% 915 669 -26.9%
    Depreciation 229 291 26.7% 908 1,031 13.6%
    Interest cost 272 245 -9.9% 1,032 1,002 -2.9%
    Forex gains/ (losses) 20 57 192.3% -33 151
    Exceptional items 1 -28 -172 -268 56.3%
    Profit before tax 3,594 4,072 13.3% 12,487 14,760 18.2%
    Tax 823 976 18.5% 2,723 3,171 16.5%
    Effective tax rate 23% 24% 22% 21%
    Profit after tax/(loss) 2,771 3,096 11.8% 9,764 11,589 18.7%
    Minority interest/ share in profit of associates -115 4 -693 -395
    Net profit after tax 2,656 3,101 16.8% 9,071 11,194 23.4%
    Net profit margin (%) 12.7% 13.7% 11.0% 12.5%
    No. of shares (m) 340.4 340.5
    Diluted earnings per share (Rs)* 33.7
    Price to earnings ratio (x) 40.3

    *On a trailing 12-month basis; adjusted for extraordinary items

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Equitymaster Agora Research Private Limited (hereinafter referred to as "Equitymaster"/"Company") was incorporated on October 25, 2007. Equitymaster is a joint venture between Quantum Information Services Private Limited (QIS) and Agora group. Equitymaster is a SEBI registered Research Analyst under the SEBI (Research Analysts) Regulations, 2014 with registration number INH000000537.

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