GODREJ CONSUMER 2019-20 Annual Report Analysis

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GODREJ CONSUMER 2019-20 Annual Report Analysis
Tue, 29 Dec

GODREJ CONSUMER has announced its results for the year ended March 2020. Let us have a look at the detailed performance review of the company during FY19-20.

GODREJ CONSUMER Income Statement Analysis

  • Operating income during the year fell 3.9% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 1.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 21.6% in FY20 as against 20.5% in FY19.
  • Depreciation charges increased by 16.1% and finance costs decreased by 3.1% YoY, respectively.
  • Other income grew by 3.3% YoY.
  • Net profit for the year declined by 36.1% YoY.
  • Net profit margins during the year declined from 22.5% in FY19 to 14.9% in FY20.

GODREJ CONSUMER Income Statement 2019-20

No. of Mths Year Ending 12 Mar-19* 12 Mar-20* % Change
Net Sales Rs m 103,143 99,108 -3.9%
Other income Rs m 1,088 1,123 3.3%
Total Revenues Rs m 104,231 100,231 -3.8%
Gross profit Rs m 21,176 21,430 1.2%
Depreciation Rs m 1,700 1,973 16.1%
Interest Rs m 2,243 2,174 -3.1%
Profit before tax Rs m 18,321 18,406 0.5%
Tax Rs m -2,562 2,638 -203.0%
Profit after tax Rs m 23,415 14,966 -36.1%
Gross profit margin % 20.5 21.6
Effective tax rate % -14.0 14.3
Net profit margin % 22.5 14.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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GODREJ CONSUMER Balance Sheet Analysis

  • The company's current liabilities during FY20 stood at Rs 45 billion as compared to Rs 39 billion in FY19, thereby witnessing an increase of 16.8%.
  • Long-term debt down at Rs 21 billion as compared to Rs 26 billion during FY19, a fall of 17.6%.
  • Current assets rose 3% and stood at Rs 48 billion, while fixed assets rose 6% and stood at Rs 93 billion in FY20.
  • Overall, the total assets and liabilities for FY20 stood at Rs 150 billion as against Rs 142 billion during FY19, thereby witnessing a growth of 6%.

GODREJ CONSUMER Balance Sheet as on March 2020

No. of Mths Year Ending 12 Mar-19* 12 Mar-20* % Change
Networth Rs m 72,669 78,984 8.7
 
Current Liabilities Rs m 38,918 45,466 16.8
Long-term Debt Rs m 26,048 21,450 -17.6
Total Liabilities Rs m 141,701 149,570 5.6
 
Current assets Rs m 46,884 48,083 2.6
Fixed Assets Rs m 87,570 93,232 6.5
Total Assets Rs m 141,701 149,570 5.6
* 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 FY20 stood at Rs 16 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY20 stood at Rs -5 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY20 stood at Rs -13 billion, an improvement of 36% on a YoY basis.
  • Overall, net cash flows for the company during FY20 stood at Rs -3 billion from the Rs -358 million net cash flows seen during FY19.

GODREJ CONSUMER Cash Flow Statement 2019-20

Particulars No. of months 12 12 % Change
Year Ending Mar-19 Mar-20
Cash Flow from Operating Activities Rs m 17,289 15,881 -8.1%
Cash Flow from Investing Activities Rs m 2,516 -5,333 -
Cash Flow from Financing Activities Rs m -20,387 -12,953 -
Net Cash Flow Rs m -358 -2,593 -
* 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 14.6, an decline from the EPS of Rs 22.9 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 740.2, stands at 50.6 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 7.7 times, while the price to sales ratio stands at 6.2 times.
  • The company's price to cash flow (P/CF) ratio stood at 44.4 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-19* 12 Mar-20*
Sales per share (Unadj.) Rs 100.9 96.9
TTM Earnings per share Rs 22.9 14.6
Diluted earnings per share Rs 23.1 14.7
Price to Cash Flow x 30.1 44.4
TTM P/E ratio x 51.0 50.6
Price / Book Value ratio x 12.7 7.7
Market Cap Rs m 756,603 751,436
Dividends per share (Unadj.) Rs 15.0 8.0
* 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 1.1x during FY20, from 1.2x during FY19. 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 improved and stood at 9.5x during FY20, from 9.2x during FY19. 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 declined and down at 18.9% during FY20, from 32.2% during FY20. 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 19.7% during FY20, from 23.4% during FY19. 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 declined and down at 11.5% during FY20, from 18.1% during FY19. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-19* 12 Mar-20*
Current ratio x 1.2 1.1
Debtors’ Days Days 46 43
Interest coverage x 9.2 9.5
Debt to equity ratio x 0.4 0.3
Return on assets % 18.1 11.5
Return on equity % 32.2 18.9
Return on capital employed % 23.4 19.7
* 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 689.3 to Rs 740.2, registering a gain of Rs 51.0 or around 7.4%.

Meanwhile, the S&P BSE FMCG Index is trading at Rs 12,682.1 (up 0.5%). Over the last one year it has moved up from 11,421.8 to 12,682.1, a gain of 1,260 points (up 11.0%).

Overall, the S&P BSE SENSEX is up 15.0% 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 (3QFY21); Net Profit Up 12.9% (Quarterly Result Update)

Feb 10, 2021 | Updated on Feb 10, 2021

For the quarter ended December 2020, GODREJ CONSUMER has posted a net profit of Rs 5 bn (up 12.9% YoY). Sales on the other hand came in at Rs 31 bn (up 10.0% YoY). Read on for a complete analysis of GODREJ CONSUMER's quarterly results.

GODREJ CONSUMER Announces Quarterly Results (1QFY21); Net Profit Down 3.0% (Quarterly Result Update)

Aug 21, 2020 | Updated on Aug 21, 2020

For the quarter ended June 2020, GODREJ CONSUMER has posted a net profit of Rs 4 bn (down 3.0% YoY). Sales on the other hand came in at Rs 23 bn (down 0.9% 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.

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