GODREJ CONSUMER 2022-23 Annual Report Analysis

Mon, 17 Jul

GODREJ CONSUMER has announced its results for the year ended March 2023. Let us have a look at the detailed performance review of the company during FY22-23.

GODREJ CONSUMER Income Statement Analysis

• Operating income during the year fell 37.5% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 23.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 24.0% in FY23 as against 19.5% in FY22.
• Depreciation charges decreased by 48.6% and finance costs decreased by 97.5% YoY, respectively.
• Other income grew by 55.5% YoY.
• Net profit for the year declined by 15.1% YoY.
• Net profit margins during the year grew from 14.5% in FY22 to 19.7% in FY23.

GODREJ CONSUMER Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	122,765	76,672	-37.5%
Other income	Rs m	897	1,395	55.5%
Total Revenues	Rs m	123,662	78,067	-36.9%
Gross profit	Rs m	23,977	18,412	-23.2%
Depreciation	Rs m	2,099	1,080	-48.6%
Interest	Rs m	1,223	31	-97.5%
Profit before tax	Rs m	21,553	18,696	-13.3%
Tax	Rs m	3,719	3,559	-4.3%
Profit after tax	Rs m	17,834	15,137	-15.1%
Gross profit margin	%	19.5	24.0
Effective tax rate	%	17.3	19.0
Net profit margin	%	14.5	19.7

Download Now: 7 Unstoppable Growth Engines of India's $10 Trillion Bull Run...

GODREJ CONSUMER Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 12 billion as compared to Rs 40 billion in FY22, thereby witnessing an decrease of -69.5%.
• Current assets fell 40% and stood at Rs 34 billion, while fixed assets rose 2% and stood at Rs 99 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 133 billion as against Rs 154 billion during FY22, thereby witnessing a fall of 14%.

GODREJ CONSUMER Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	115,428	93,625	-18.9
Current Liabilities	Rs m	39,716	12,131	-69.5
Long-term Debt	Rs m	3,809	0	-100.0
Total Liabilities	Rs m	154,026	132,792	-13.8
Current assets	Rs m	56,873	34,101	-40.0
Fixed Assets	Rs m	97,153	98,691	1.6
Total Assets	Rs m	154,026	132,792	-13.8

GODREJ CONSUMER Cash Flow Statement Analysis

• GODREJ CONSUMER's cash flow from operating activities (CFO) during FY23 stood at Rs 20 billion, an improvement of 36.3% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -20 billion, an improvement of 131.9% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 92 million, an improvement of 102% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -175 million from the Rs 2 billion net cash flows seen during FY22.

GODREJ CONSUMER Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-22	Mar-23
Cash Flow from Operating Activities	Rs m	14,506	19,770	36.3%
Cash Flow from Investing Activities	Rs m	-8,642	-20,037	-
Cash Flow from Financing Activities	Rs m	-3,795	92	-
Net Cash Flow	Rs m	2,271	-175	-

Current Valuations for GODREJ CONSUMER

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 14.8, an decline from the EPS of Rs 17.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,063.0, stands at 63.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 11.6 times, while the price to sales ratio stands at 14.2 times.
• The company's price to cash flow (P/CF) ratio stood at 53.0 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Sales per share (Unadj.)	Rs	120.1	75.0
TTM Earnings per share	Rs	17.4	14.8
Diluted earnings per share	Rs	17.4	14.8
Price to Cash Flow	x	38.3	53.0
TTM P/E ratio	x	42.9	63.9
Price / Book Value ratio	x	8.0	9.2
Market Cap	Rs m	919,658	859,703
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for GODREJ CONSUMER

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.8x during FY23, from 1.4x during FY22. 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 610.0x during FY23, from 18.6x during FY22. 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 16.2% during FY23, from 15.5% during FY23. 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 20.0% during FY23, from 19.1% during FY22. 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 11.4% during FY23, from 12.4% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Current ratio	x	1.4	2.8
Debtors’ Days	Days	3	2
Interest coverage	x	18.6	610.0
Debt to equity ratio	x	0.0	0.0
Return on assets	%	12.4	11.4
Return on equity	%	15.5	16.2
Return on capital employed	%	19.1	20.0

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 874.2 to Rs 1,063.0, registering a gain of Rs 188.9 or around 21.6%.

Meanwhile, the S&P BSE FMCG Index is trading at Rs 19,183.3 (up 0.0%). Over the last one year it has moved up from 15,091.9 to 19,183.3, a gain of 4,091 points (up 27.1%).

Overall, the S&P BSE SENSEX is up 24.4% over the year.

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