GODREJ CONSUMER 2020-21 Annual Report Analysis

Wed, 31 Mar

GODREJ CONSUMER has announced its results for the year ended March 2021. Let us have a look at the detailed performance review of the company during FY20-21.

GODREJ CONSUMER Income Statement Analysis

• Operating income during the year rose 11.3% on a year-on-year (YoY) basis.
• The company's operating profit increased by 13.6% YoY during the fiscal. Operating profit margins witnessed a fall and down at 21.4% in FY21 as against 20.9% in FY20.
• Depreciation charges increased by 3.3% and finance costs decreased by 39.7% YoY, respectively.
• Other income declined by 40.3% YoY.
• Net profit for the year grew by 15.0% YoY.
• Net profit margins during the year grew from 15.1% in FY20 to 15.6% in FY21.

GODREJ CONSUMER Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	99,108	110,286	11.3%
Other income	Rs m	1,123	671	-40.3%
Total Revenues	Rs m	100,231	110,957	10.7%
Gross profit	Rs m	20,727	23,548	13.6%
Depreciation	Rs m	1,973	2,039	3.3%
Interest	Rs m	2,281	1,377	-39.7%
Profit before tax	Rs m	17,596	20,804	18.2%
Tax	Rs m	2,638	3,595	36.3%
Profit after tax	Rs m	14,958	17,208	15.0%
Gross profit margin	%	20.9	21.4
Effective tax rate	%	15.0	17.3
Net profit margin	%	15.1	15.6

Don't Miss: Best Chance to Access Midcap Stocks Research at 80% OFF

GODREJ CONSUMER Balance Sheet Analysis

• The company's current liabilities during FY21 down at Rs 41 billion as compared to Rs 45 billion in FY20, thereby witnessing an decrease of -9.0%.
• Long-term debt down at Rs 5 billion as compared to Rs 21 billion during FY20, a fall of 77.6%.
• Current assets fell 7% and stood at Rs 45 billion, while fixed assets fell 4% and stood at Rs 91 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 136 billion as against Rs 143 billion during FY20, thereby witnessing a fall of 5%.

GODREJ CONSUMER Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	78,857	94,314	19.6
Current Liabilities	Rs m	45,466	41,357	-9.0
Long-term Debt	Rs m	21,450	4,801	-77.6
Total Liabilities	Rs m	143,102	136,060	-4.9
Current assets	Rs m	48,083	44,724	-7.0
Fixed Assets	Rs m	95,019	91,336	-3.9
Total Assets	Rs m	143,102	136,060	-4.9

GODREJ CONSUMER Cash Flow Statement Analysis

• GODREJ CONSUMER's cash flow from operating activities (CFO) during FY21 stood at Rs 20 billion, an improvement of 27.8% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -3 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -18 billion on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs -772 million from the Rs -3 billion net cash flows seen during FY20.

GODREJ CONSUMER Cash Flow Statement 2020-21

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-20	Mar-21
Cash Flow from Operating Activities	Rs m	15,881	20,296	27.8%
Cash Flow from Investing Activities	Rs m	-5,333	-3,155	-
Cash Flow from Financing Activities	Rs m	-12,953	-18,162	-
Net Cash Flow	Rs m	-2,555	-772	-

Current Valuations for GODREJ CONSUMER

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 16.8, an improvement from the EPS of Rs 14.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 728.8, stands at 43.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 7.9 times, while the price to sales ratio stands at 6.8 times.
• The company's price to cash flow (P/CF) ratio stood at 34.3 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Sales per share (Unadj.)	Rs	96.9	107.9
TTM Earnings per share	Rs	14.6	16.8
Diluted earnings per share	Rs	14.6	16.8
Price to Cash Flow	x	31.4	34.3
TTM P/E ratio	x	35.6	43.3
Price / Book Value ratio	x	7.8	7.0
Market Cap	Rs m	611,805	660,552
Dividends per share (Unadj.)	Rs	8.0	0.0

Ratio Analysis for GODREJ CONSUMER

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.1x during FY21, from 1.1x during FY20. 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 16.1x during FY21, from 8.7x during FY20. 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 18.2% during FY21, from 19.0% during FY21. 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 22.4% during FY21, from 19.8% during FY20. 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 13.7% during FY21, from 12.0% during FY20. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Current ratio	x	1.1	1.1
Debtors’ Days	Days	4	3
Interest coverage	x	8.7	16.1
Debt to equity ratio	x	0.3	0.1
Return on assets	%	12.0	13.7
Return on equity	%	19.0	18.2
Return on capital employed	%	19.8	22.4

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 520.7 to Rs 728.8, registering a gain of Rs 208.1 or around 40.0%.

Meanwhile, the S&P BSE FMCG Index is trading at Rs 12,875.4 (up 1.1%). Over the last one year it has moved up from 10,254.9 to 12,875.4, a gain of 2,621 points (up 25.6%).

Overall, the S&P BSE SENSEX is up 74.1% over the year.

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

Read: Latest Annual Report Analysis of GODREJ CONSUMER