GODREJ CONSUMER 2018-19 Annual Report Analysis

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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)

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Related Views on News

GODREJ CONSUMER Announces Quarterly Results (3QFY20); Net Profit Up 5.0% (Quarterly Result Update)

Jan 31, 2020 | Updated on Jan 31, 2020

For the quarter ended December 2019, GODREJ CONSUMER has posted a net profit of Rs 4 bn (up 5.0% YoY). Sales on the other hand came in at Rs 28 bn (up 2.1% YoY). Read on for a complete analysis of GODREJ CONSUMER's quarterly results.

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.

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