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GODREJ CONSUMER 2021-22 Annual Report Analysis
Thu, 14 Jul

GODREJ CONSUMER has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

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 1.8% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 19.5% in FY22 as against 21.4% in FY21.
  • Depreciation charges increased by 3.0% and finance costs decreased by 11.2% YoY, respectively.
  • Other income grew by 33.8% YoY.
  • Net profit for the year grew by 3.6% YoY.
  • Net profit margins during the year declined from 15.6% in FY21 to 14.5% in FY22.

GODREJ CONSUMER Income Statement 2021-22

No. of Mths Year Ending 12 Mar-21* 12 Mar-22* % Change
Net Sales Rs m 110,286 122,765 11.3%
Other income Rs m 671 897 33.8%
Total Revenues Rs m 110,957 123,662 11.5%
Gross profit Rs m 23,548 23,975 1.8%
Depreciation Rs m 2,039 2,099 3.0%
Interest Rs m 1,377 1,223 -11.2%
Profit before tax Rs m 20,804 21,550 3.6%
Tax Rs m 3,595 3,719 3.4%
Profit after tax Rs m 17,208 17,831 3.6%
Gross profit margin % 21.4 19.5
Effective tax rate % 17.3 17.3
Net profit margin % 15.6 14.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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GODREJ CONSUMER Balance Sheet Analysis

  • The company's current liabilities during FY22 down at Rs 40 billion as compared to Rs 41 billion in FY21, thereby witnessing an decrease of -4.0%.
  • Long-term debt down at Rs 4 billion as compared to Rs 5 billion during FY21, a fall of 20.7%.
  • Current assets rose 27% and stood at Rs 57 billion, while fixed assets rose 6% and stood at Rs 97 billion in FY22.
  • Overall, the total assets and liabilities for FY22 stood at Rs 154 billion as against Rs 136 billion during FY21, thereby witnessing a growth of 13%.

GODREJ CONSUMER Balance Sheet as on March 2022

No. of Mths Year Ending 12 Mar-21* 12 Mar-22* % Change
Networth Rs m 94,314 115,428 22.4
 
Current Liabilities Rs m 41,357 39,716 -4.0
Long-term Debt Rs m 4,801 3,809 -20.7
Total Liabilities Rs m 136,060 154,026 13.2
 
Current assets Rs m 44,724 56,873 27.2
Fixed Assets Rs m 91,336 97,153 6.4
Total Assets Rs m 136,060 154,026 13.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



GODREJ CONSUMER Cash Flow Statement Analysis

  • GODREJ CONSUMER's cash flow from operating activities (CFO) during FY22 stood at Rs 15 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY22 stood at Rs -9 billion, an improvement of 173.9% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY22 stood at Rs -4 billion, an improvement of 79% on a YoY basis.
  • Overall, net cash flows for the company during FY22 stood at Rs 2 billion from the Rs -772 million net cash flows seen during FY21.

GODREJ CONSUMER Cash Flow Statement 2021-22

Particulars No. of months 12 12 % Change
Year Ending Mar-21 Mar-22
Cash Flow from Operating Activities Rs m 20,296 14,506 -28.5%
Cash Flow from Investing Activities Rs m -3,155 -8,642 -
Cash Flow from Financing Activities Rs m -18,162 -3,795 -
Net Cash Flow Rs m -772 2,271 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for GODREJ CONSUMER

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 17.4, an improvement from the EPS of Rs 16.8 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 876.0, stands at 50.2 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 7.8 times, while the price to sales ratio stands at 7.3 times.
  • The company's price to cash flow (P/CF) ratio stood at 46.1 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-21* 12 Mar-22*
Sales per share (Unadj.) Rs 107.9 120.1
TTM Earnings per share Rs 16.8 17.4
Diluted earnings per share Rs 16.8 17.4
Price to Cash Flow x 38.7 46.1
TTM P/E ratio x 43.3 50.2
Price / Book Value ratio x 7.0 8.0
Market Cap Rs m 660,552 919,658
Dividends per share (Unadj.) Rs 0.0 0.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for GODREJ CONSUMER

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.4x during FY22, from 1.1x during FY21. 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 18.6x during FY22, from 16.1x during FY21. 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 15.4% during FY22, from 18.2% during FY22. 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 19.1% during FY22, from 22.4% during FY21. 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 12.4% during FY22, from 13.7% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-21* 12 Mar-22*
Current ratio x 1.1 1.4
Debtors’ Days Days 3 3
Interest coverage x 16.1 18.6
Debt to equity ratio x 0.1 0.0
Return on assets % 13.7 12.4
Return on equity % 18.2 15.4
Return on capital employed % 22.4 19.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, 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 940.0 to Rs 876.0, registering a loss of Rs 64.0 or around 6.8%.

Meanwhile, the S&P BSE FMCG Index is trading at Rs 14,874.2 (down 0.2%). Over the last one year it has moved up from 13,549.6 to 14,874.2, a gain of 1,325 points (up 9.8%).

Overall, the S&P BSE SENSEX is up 2.1% over the year.

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

Annual Report FAQs

What is the current share price of GODREJ CONSUMER?

GODREJ CONSUMER currently trades at Rs 0.0 per share. You can check out the latest share price performance of GODREJ CONSUMER here...

What was the revenue of GODREJ CONSUMER in FY22? How does it compare to earlier years?

The revenues of GODREJ CONSUMER stood at Rs 123,662 m in FY22, which was up 11.5% compared to Rs 110,957 m reported in FY21.

GODREJ CONSUMER's revenue has grown from Rs 98,694 m in FY18 to Rs 123,662 m in FY22.

Over the past 5 years, the revenue of GODREJ CONSUMER has grown at a CAGR of 5.8%.

What was the net profit of GODREJ CONSUMER in FY22? How does it compare to earlier years?

The net profit of GODREJ CONSUMER stood at Rs 17,831 m in FY22, which was up 3.6% compared to Rs 17,208 m reported in FY21.

This compares to a net profit of Rs 14,958 m in FY20 and a net profit of Rs 23,409 m in FY19.

Over the past 5 years, GODREJ CONSUMER net profit has grown at a CAGR of 2.2%.

What does the cash flow statement of GODREJ CONSUMER reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of GODREJ CONSUMER reveals:

  • Cash flow from operations decreased in FY22 and stood at Rs 14,506 m as compared to Rs 20,296 m in FY21.
  • Cash flow from investments decreased in FY22 and stood at Rs -8,642 m as compared to Rs -3,155 m in FY21.
  • Cash flow from financial activity increased in FY22 and stood at Rs -3,795 m as compared to Rs -18,162 m in FY21.

Here's the cash flow statement of GODREJ CONSUMER for the past 5 years.

(Rs m)FY18FY19FY20FY21FY22
From Operations17,23417,28915,88120,29614,506
From Investments-3,3982,516-5,333-3,155-8,642
From Financial Activity-13,840-20,387-12,953-18,162-3,795
Net Cashflow30-358-2,555-7722,271

What does the Key Ratio analysis of GODREJ CONSUMER reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of GODREJ CONSUMER reveals:

  • Operating profit margins witnessed a fall and stood at 19.5% in FY22 as against 21.4% in FY21.
  • Net profit margins declined from 15.6% in FY21 to 14.5% in FY22.
  • Debt to Equity ratio for FY22 stood at 0.0 as compared to 0.1 in FY21.

Here's the ratio/financial analysis of GODREJ CONSUMER for the past 5 years.

 FY18FY19FY20FY21FY22
Operating Profit Margin (%)23.123.120.921.419.5
Net Profit Margin (%)16.722.715.115.614.5
Debt to Equity Ratio (x)0.40.40.30.10.0

 

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