GODREJ CONSUMER 2017-18 Annual Report Analysis

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GODREJ CONSUMER 2017-18 Annual Report Analysis
Tue, 1 Jan

GODREJ CONSUMER has announced its results for the year ended March 2018. Let us have a look at the detailed performance review of the company during FY17-18.

GODREJ CONSUMER Income Statement Analysis

  • Operating income during the year rose 6.2% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 8.9% YoY during the fiscal. Operating profit margins witnessed a fall and down at 21.0% in FY18 as against 20.5% in FY17.
  • Depreciation charges increased by 10.0% and finance costs increased by 10.7% YoY, respectively.
  • Other income grew by 42.8% YoY.
  • Net profit for the year grew by 24.9% YoY.
  • Net profit margins during the year grew from 14.0% in FY17 to 16.4% in FY18.

GODREJ CONSUMER Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 92,679 98,433 6.2%
Other income Rs m 753 1,076 42.8%
Total Revenues Rs m 93,432 99,508 6.5%
Gross profit Rs m 18,977 20,671 8.9%
Depreciation Rs m 1,416 1,557 10.0%
Interest Rs m 1,452 1,607 10.7%
Profit before tax Rs m 16,862 18,582 10.2%
Tax Rs m 3,792 4,047 6.7%
Profit after tax Rs m 13,080 16,342 24.9%
Gross profit margin % 20.5 21.0
Effective tax rate % 22.5 21.8
Net profit margin % 14.0 16.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



GODREJ CONSUMER Balance Sheet Analysis

  • The company's current liabilities during FY18 stood at Rs 42 billion as compared to Rs 33 billion in FY17, thereby witnessing an increase of 24.4%.
  • Long-term debt down at Rs 24 billion as compared to Rs 31 billion during FY17, a fall of 23.4%.
  • Current assets rose 18% and stood at Rs 52 billion, while fixed assets rose 11% and stood at Rs 11 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 140 billion as against Rs 130 billion during FY17, thereby witnessing a growth of 7%.

GODREJ CONSUMER Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 53,020 62,583 18.0
 
Current Liabilities Rs m 33,474 41,648 24.4
Long-term Debt Rs m 31,083 23,803 -23.4
Total Liabilities Rs m 130,365 139,627 7.1
 
Current assets Rs m 43,716 51,677 18.2
Fixed Assets Rs m 10,377 11,484 10.7
Total Assets Rs m 130,365 139,627 7.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



GODREJ CONSUMER Cash Flow Statement Analysis

  • GODREJ CONSUMER's cash flow from operating activities (CFO) during FY18 stood at Rs 17 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs -3 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs -14 billion on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs 30 million from the Rs 3 billion net cash flows seen during FY17.

GODREJ CONSUMER Cash Flow Statement 2017-18

Particulars No. of months 12 12 % Change
Year Ending Mar-17 Mar-18
Cash Flow from Operating Activities Rs m 18,602 17,234 -7.4%
Cash Flow from Investing Activities Rs m -21,698 -3,398 -
Cash Flow from Financing Activities Rs m 6,647 -13,840 -
Net Cash Flow Rs m 3,377 30 -99.1%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for GODREJ CONSUMER

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 24.0, an decline from the EPS of Rs 38.4 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 814.9, stands at 41.8 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 15.4 times, while the price to sales ratio stands at 9.8 times.
  • The company's price to cash flow (P/CF) ratio stood at 46.2 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-17* 12 Mar-18*
Sales per share (Unadj.) Rs 272.1 144.5
TTM Earnings per share Rs 38.4 24.0
Diluted earnings per share Rs 12.9 16.1
Price to Cash Flow x 19.2 46.2
TTM P/E ratio x 14.0 41.8
Price / Book Value ratio x 9.7 15.4
Market Cap Rs m 277,538 827,219
Dividends per share (Unadj.) Rs 15.0 15.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for GODREJ CONSUMER

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.2x during FY18, from 1.3x during FY17. The current ratio measures the company's ability to pay short-term and long-term obligations.

    Interest Coverage Ratio: The company's interest coverage ratio deteriorated and stood at 12.6x during FY18, from 12.6x during FY17. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

  • Profitability Ratios
  • Return on Equity (ROE): The ROE for the company improved and stood at 26.1% during FY18, from 24.7% during FY18. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

    Return on Capital Employed (ROCE): The ROCE for the company improved and stood at 25.5% during FY18, from 21.8% during FY17. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

    Return on Assets (ROA): The ROA of the company improved and stood at 12.9% during FY18, from 11.1% during FY17. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-17* 12 Mar-18*
Current ratio x 1.3 1.2
Debtors’ Days Days 41 46
Interest coverage x 12.6 12.6
Debt to equity ratio x 0.6 0.4
Return on assets % 11.1 12.9
Return on equity % 24.7 26.1
Return on capital employed % 21.8 25.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



To see how GODREJ CONSUMER has performed over the last 5 years, please visit here.

GODREJ CONSUMER Share Price Performance

Over the last one year, GODREJ CONSUMER share price has moved up from Rs 658.8 to Rs 814.9, registering a gain of Rs 156.1 or around 23.7%.

Meanwhile, the S&P BSE FMCG Index is trading at Rs 11,812.0 (down 0.1%). Over the last one year it has moved up from 10,695.2 to 11,812.0, a gain of 1,117 points (up 10.4%).

Overall, the S&P BSE SENSEX is up 6.5% over the year.

(To know more, check out historical annual results for GODREJ CONSUMER and quarterly results for GODREJ CONSUMER)

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Related Views on News

GODREJ CONSUMER Announces Quarterly Results (2QFY20); Net Profit Down 28.4% (Quarterly Result Update)

Nov 7, 2019 | Updated on Nov 7, 2019

For the quarter ended September 2019, GODREJ CONSUMER has posted a net profit of Rs 4 bn (down 28.4% YoY). Sales on the other hand came in at Rs 26 bn (down 1.1% YoY). Read on for a complete analysis of GODREJ CONSUMER's quarterly results.

GODREJ CONSUMER 2018-19 Annual Report Analysis (Annual Result Update)

Sep 16, 2019 | Updated on Sep 16, 2019

Here's an analysis of the annual report of GODREJ CONSUMER for 2018-19. It includes a full income statement, balance sheet and cash flow analysis of GODREJ CONSUMER. Also includes updates on the valuation of GODREJ CONSUMER.

GODREJ CONSUMER Announces Quarterly Results (1QFY20); Net Profit Up 15.5% (Quarterly Result Update)

Aug 2, 2019 | Updated on Aug 2, 2019

For the quarter ended June 2019, GODREJ CONSUMER has posted a net profit of Rs 4 bn (up 15.5% YoY). Sales on the other hand came in at Rs 23 bn (down 5.1% YoY). Read on for a complete analysis of GODREJ CONSUMER's quarterly results.

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