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GODFREY PHILLIPS 2017-18 Annual Report Analysis
Sat, 31 Mar

GODFREY PHILLIPS has announced its results for the year ended March 2018. Let us have a look at the detailed performance review of the company during FY17-18.

GODFREY PHILLIPS Income Statement Analysis

  • Operating income during the year rose 347.5% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 10.0% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 15.8% in FY18 as against 64.3% in FY17.
  • Depreciation charges increased by 0.6% and finance costs decreased by 53.2% YoY, respectively.
  • Other income grew by 15.6% YoY.
  • Net profit for the year grew by 16.2% YoY.
  • Net profit margins during the year declined from 34.7% in FY17 to 9.0% in FY18.

GODFREY PHILLIPS Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 3,934 17,605 347.5%
Other income Rs m 472 546 15.6%
Total Revenues Rs m 4,406 18,151 311.9%
Gross profit Rs m 2,531 2,783 10.0%
Depreciation Rs m 978 984 0.6%
Interest Rs m 36 17 -53.2%
Profit before tax Rs m 1,989 2,328 17.0%
Tax Rs m 623 740 18.8%
Profit after tax Rs m 1,366 1,588 16.2%
Gross profit margin % 64.3 15.8
Effective tax rate % 31.3 31.8
Net profit margin % 34.7 9.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



New Research: 2 stocks to buy as Nifty50 heads towards 40,000

GODFREY PHILLIPS Balance Sheet Analysis

  • The company's current liabilities during FY18 stood at Rs 6 billion as compared to Rs 4 billion in FY17, thereby witnessing an increase of 30.0%.
  • Long-term debt stood at Rs 7 million as compared to Rs 0 million during FY17, a fall of 0.0%.
  • Current assets fell 5% and stood at Rs 10 billion, while fixed assets rose 25% and stood at Rs 15 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 25 billion as against Rs 22 billion during FY17, thereby witnessing a growth of 12%.

GODFREY PHILLIPS Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 16,604 17,934 8.0
 
Current Liabilities Rs m 4,330 5,627 30.0
Long-term Debt Rs m 0 7 0.0
Total Liabilities Rs m 22,077 24,648 11.6
 
Current assets Rs m 10,145 9,687 -4.5
Fixed Assets Rs m 11,932 14,961 25.4
Total Assets Rs m 22,077 24,648 11.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



GODFREY PHILLIPS Cash Flow Statement Analysis

  • GODFREY PHILLIPS's cash flow from operating activities (CFO) during FY18 stood at Rs 5 billion, an improvement of 110.3% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs -4 billion, an improvement of 225.0% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs -991 million, an improvement of 21% on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs 118 million from the Rs -41 million net cash flows seen during FY17.

GODFREY PHILLIPS Cash Flow Statement 2017-18

Particulars No. of months 12 12 % Change
Year Ending Mar-17 Mar-18
Cash Flow from Operating Activities Rs m 2,453 5,158 110.3%
Cash Flow from Investing Activities Rs m -1,246 -4,049 -
Cash Flow from Financing Activities Rs m -1,249 -991 -
Net Cash Flow Rs m -41 118 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for GODFREY PHILLIPS

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 30.5, an improvement from the EPS of Rs 26.3 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 821.0, stands at 26.6 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 2.4 times, while the price to sales ratio stands at 2.4 times.
  • The company's price to cash flow (P/CF) ratio stood at 21.9 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-17* 12 Mar-18*
Sales per share (Unadj.) Rs 75.7 338.6
TTM Earnings per share Rs 26.3 30.5
Diluted earnings per share Rs 26.3 30.5
Price to Cash Flow x 25.1 21.9
TTM P/E ratio x 43.2 26.6
Price / Book Value ratio x 3.7 3.1
Market Cap Rs m 60,755 56,356
Dividends per share (Unadj.) Rs 8.0 8.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for GODFREY PHILLIPS

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 1.7x during FY18, from 2.3x during FY17. 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 140.5x during FY18, from 56.8x during FY17. 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 8.9% during FY18, from 8.2% during FY18. 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 13.1% during FY18, from 12.2% during FY17. 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 6.5% during FY18, from 6.4% during FY17. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-17* 12 Mar-18*
Current ratio x 2.3 1.7
Debtors’ Days Days 1,661 178
Interest coverage x 56.8 140.5
Debt to equity ratio x 0.0 0.0
Return on assets % 6.4 6.5
Return on equity % 8.2 8.9
Return on capital employed % 12.2 13.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



To see how GODFREY PHILLIPS has performed over the last 5 years, please visit here.

GODFREY PHILLIPS Share Price Performance

Over the last one year, GODFREY PHILLIPS share price has moved down from Rs 1,133.1 to Rs 821.0, registering a loss of Rs 312.1 or around 27.5%.

Overall, the S&P BSE SENSEX is up 12.1% over the year.

(To know more, check out historical annual results for GODFREY PHILLIPS and quarterly results for GODFREY PHILLIPS)

Annual Report FAQs

What is the current share price of GODFREY PHILLIPS?

GODFREY PHILLIPS currently trades at Rs 3,087.9 per share. You can check out the latest share price performance of GODFREY PHILLIPS here...

What was the revenue of GODFREY PHILLIPS in FY18? How does it compare to earlier years?

The revenues of GODFREY PHILLIPS stood at Rs 18,151 m in FY18, which was up 311.9% compared to Rs 4,406 m reported in FY17.

GODFREY PHILLIPS' revenue has grown from Rs 4,309 m in FY16 to Rs 18,151 m in FY18.

Over the past 3 years, the revenue of GODFREY PHILLIPS has grown at a CAGR of 105.2%.

What was the net profit of GODFREY PHILLIPS in FY18? How does it compare to earlier years?

The net profit of GODFREY PHILLIPS stood at Rs 1,588 m in FY18, which was up 16.2% compared to Rs 1,366 m reported in FY17.

This compares to a net profit of Rs 1,693 m in FY16.

Over the past 3 years, GODFREY PHILLIPS net profit has grown at a CAGR of -3.2%.

What does the cash flow statement of GODFREY PHILLIPS 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 GODFREY PHILLIPS reveals:

  • Cash flow from operations increased in FY18 and stood at Rs 5,158 m as compared to Rs 2,453 m in FY17.
  • Cash flow from investments decreased in FY18 and stood at Rs -4,049 m as compared to Rs -1,246 m in FY17.
  • Cash flow from financial activity increased in FY18 and stood at Rs -991 m as compared to Rs -1,249 m in FY17.

Here's the cash flow statement of GODFREY PHILLIPS for the past 3 years.

(Rs m)FY16FY17FY18
From Operations3,1912,4535,158
From Investments-1,189-1,246-4,049
From Financial Activity-1,975-1,249-991
Net Cashflow28-41118

What does the Key Ratio analysis of GODFREY PHILLIPS 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 GODFREY PHILLIPS reveals:

  • Operating profit margins witnessed a fall and stood at 15.8% in FY18 as against 64.3% in FY17.
  • Net profit margins declined from 34.7% in FY17 to 9.0% in FY18.
  • Debt to Equity ratio for FY18 stood at 0.0 as compared to 0.0 in FY17.

Here's the ratio/financial analysis of GODFREY PHILLIPS for the past 3 years.

 FY16FY17FY18
Operating Profit Margin (%)82.164.315.8
Net Profit Margin (%)43.034.79.0
Debt to Equity Ratio (x)0.00.00.0

Read: Latest Annual Report Analysis of GODFREY PHILLIPS

 

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