GODREJ CONSUMER 2018-19 Annual Report Analysis

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

GODREJ CONSUMER 2018-19 Annual Report Analysis
Mon, 16 Sep

GODREJ CONSUMER has announced its results for the year ended March 2019. Let us have a look at the detailed performance review of the company during FY18-19.

GODREJ CONSUMER Income Statement Analysis

  • Operating income during the year rose 4.7% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 2.4% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 20.5% in FY19 as against 21.0% in FY18.
  • Depreciation charges increased by 9.2% and finance costs increased by 39.5% YoY, respectively.
  • Other income grew by 1.1% YoY.
  • Net profit for the year grew by 43.3% YoY.
  • Net profit margins during the year grew from 16.4% in FY18 to 22.5% in FY19.

GODREJ CONSUMER Income Statement 2018-19

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Net Sales Rs m 98,474 103,143 4.7%
Other income Rs m 1,076 1,088 1.1%
Total Revenues Rs m 99,550 104,231 4.7%
Gross profit Rs m 20,671 21,176 2.4%
Depreciation Rs m 1,557 1,700 9.2%
Interest Rs m 1,607 2,243 39.5%
Profit before tax Rs m 18,582 18,321 -1.4%
Tax Rs m 4,047 -2,562 -163.3%
Profit after tax Rs m 16,342 23,415 43.3%
Gross profit margin % 21.0 20.5
Effective tax rate % 21.8 -14.0
Net profit margin % 16.4 22.5
* 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 FY19 down at Rs 39 billion as compared to Rs 42 billion in FY18, thereby witnessing an decrease of -6.8%.
  • Long-term debt stood at Rs 26 billion as compared to Rs 24 billion during FY18, a growth of 9.4%.
  • Current assets fell 9% and stood at Rs 47 billion, while fixed assets rose 4% and stood at Rs 88 billion in FY19.
  • Overall, the total assets and liabilities for FY19 stood at Rs 142 billion as against Rs 140 billion during FY18, thereby witnessing a growth of 1%.

GODREJ CONSUMER Balance Sheet as on March 2019

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Networth Rs m 62,583 72,669 16.1
 
Current Liabilities Rs m 41,760 38,918 -6.8
Long-term Debt Rs m 23,803 26,048 9.4
Total Liabilities Rs m 139,638 141,701 1.5
 
Current assets Rs m 51,688 46,884 -9.3
Fixed Assets Rs m 84,352 87,570 3.8
Total Assets Rs m 139,638 141,701 1.5
* 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 FY19 stood at Rs 17 billion, an improvement of 0.3% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY19 stood at Rs 3 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY19 stood at Rs -20 billion on a YoY basis.
  • Overall, net cash flows for the company during FY19 stood at Rs -358 million from the Rs 30 million net cash flows seen during FY18.

GODREJ CONSUMER Cash Flow Statement 2018-19

Particulars No. of months 12 12 % Change
Year Ending Mar-18 Mar-19
Cash Flow from Operating Activities Rs m 17,234 17,289 0.3%
Cash Flow from Investing Activities Rs m -3,398 2,516 -
Cash Flow from Financing Activities Rs m -13,840 -20,387 -
Net Cash Flow Rs m 30 -358 -
* 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 22.9, an decline from the EPS of Rs 24.0 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 634.0, stands at 27.5 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 12.7 times, while the price to sales ratio stands at 8.9 times.
  • The company's price to cash flow (P/CF) ratio stood at 25.6 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-18* 12 Mar-19*
Sales per share (Unadj.) Rs 144.5 100.9
TTM Earnings per share Rs 24.0 22.9
Diluted earnings per share Rs 16.1 23.1
Price to Cash Flow x 24.1 25.6
TTM P/E ratio x 18.4 27.5
Price / Book Value ratio x 15.4 12.7
Market Cap Rs m 431,929 643,573
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 deteriorated and stood at 1.2x during FY19, from 1.2x during FY18. 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 9.2x during FY19, from 12.6x during FY18. 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 32.2% during FY19, from 26.1% during FY19. 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 declined and down at 23.4% during FY19, from 25.5% during FY18. 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 18.1% during FY19, from 12.9% during FY18. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-18* 12 Mar-19*
Current ratio x 1.2 1.2
Debtors’ Days Days 46 46
Interest coverage x 12.6 9.2
Debt to equity ratio x 0.4 0.4
Return on assets % 12.9 18.1
Return on equity % 26.1 32.2
Return on capital employed % 25.5 23.4
* 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 down from Rs 864.1 to Rs 634.0, registering a loss of Rs 230.2 or around 26.6%.

Meanwhile, the S&P BSE FMCG Index is trading at Rs 10,896.6 (up 0.1%). Over the last one year it has moved down from 12,068.1 to 10,896.6, a loss of 1,171 points (down 9.7%).

Overall, the S&P BSE SENSEX is down 2.4% over the year.

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

Equitymaster requests your view! Post a comment on "GODREJ CONSUMER 2018-19 Annual Report Analysis". Click here!

  

Related Views on News

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.

GODREJ CONSUMER Announces Quarterly Results (4QFY19); Net Profit Up 51.6% (Quarterly Result Update)

May 7, 2019 | Updated on May 7, 2019

For the quarter ended March 2019, GODREJ CONSUMER has posted a net profit of Rs 9 bn (up 51.6% YoY). Sales on the other hand came in at Rs 25 bn (down 3.0% YoY). Read on for a complete analysis of GODREJ CONSUMER's quarterly results.

More Views on News

Most Popular

My 3 Best Small-cap Stocks to Get Rich in this Market Rebound(Profit Hunter)

Oct 14, 2019

This is once in a decade opportunity to make a killing from smallcap rebound.

Finally, Is the Share Price of Yes Bank Ready for a Rebound?(The 5 Minute Wrapup)

Oct 7, 2019

Here's what every individual investor must know about Yes Bank...

The One Stock I Like in this Market(The 5 Minute Wrapup)

Oct 10, 2019

There are rare periods in markets when you get good quality stocks at attractive valuations. Is this one such period?

Rebound Riches Could be Yours With These Stocks(Profit Hunter)

Oct 4, 2019

The secret to multibagger is not big businesses, but great managements... Here's how to find them to make the most of once in a decade rebound opportunity.

5 Smart Money Stocks to Profit from the Market Rebound(The 5 Minute Wrapup)

Oct 11, 2019

Now is the time to put money in these 5 stocks to take advantage of the recovery in the economy and the markets.

More

Get the Indian Stock Market's
Most Profitable Ideas

How To Beat Sensex Guide 2020
Get our special report, How to Beat Sensex Nearly 3X Now!
We will never sell or rent your email id.
Please read our Terms

TRACK GODREJ CONSUMER

  • Track your investment in GODREJ CONSUMER with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
  • Add To MyStocks

MORE ON GODREJ CONSUMER

GODREJ CONSUMER 8-QTR ANALYSIS

COMPARE GODREJ CONSUMER WITH

MARKET STATS