X

Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2019 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.


Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
GODREJ INDUSTRIES 2017-18 Annual Report Analysis

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

GODREJ INDUSTRIES 2017-18 Annual Report Analysis
Thu, 16 Aug

GODREJ INDUSTRIES 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.

GODREJ INDUSTRIES Income Statement Analysis

  • Operating income during the year rose 11.9% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 31.1% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 4.7% in FY18 as against 7.7% in FY17.
  • Depreciation charges and finance costs increased by 18.3% YoY and 2.8% YoY, respectively.
  • Other income grew by 233.9% YoY.
  • Net profit for the year grew by 37.5% YoY.
  • Net profit margins during the year grew from 5.4% in FY17 to 6.4% in FY18.

GODREJ INDUSTRIES Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 83,651 93,565 11.9%
Other income Rs m 1,689 5,638 233.9%
Total Revenues Rs m 85,340 99,203 16.2%
Gross profit Rs m 6,409 4,417 -31.1%
Depreciation Rs m 1,481 1,753 18.3%
Interest Rs m 4,018 4,132 2.8%
Profit before tax Rs m 2,598 4,171 60.5%
Tax Rs m 1,674 1,837 9.7%
Profit after tax Rs m 4,588 6,311 37.5%
Gross profit margin % 7.7 4.7
Effective tax rate % 64.4 44.0
Net profit margin % 5.4 6.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



GODREJ INDUSTRIES Balance Sheet Analysis

  • The company's current liabilities during FY18 stood at Rs 89 billion as compared to Rs 87 billion in FY17, thereby witnessing an increase of 1.9%.
  • Long-term debt down at Rs 10 billion as compared to Rs 15 billion during FY17, a fall of 36.9%.
  • Current assets fell 5% and stood at Rs 80 billion, while fixed assets rose 7% and stood at Rs 36 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 158 billion as against Rs 152 billion during FY17, thereby witnessing a growth of 4%.

GODREJ INDUSTRIES Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 31,956 39,089 22.3
 
Current Liabilities Rs m 87,424 89,050 1.9
Long-term Debt Rs m 15,083 9,523 -36.9
Total Liabilities Rs m 152,203 158,463 4.1
 
Current assets Rs m 83,939 79,771 -5.0
Fixed Assets Rs m 33,387 35,728 7.0
Total Assets Rs m 152,203 158,463 4.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



GODREJ INDUSTRIES Cash Flow Statement Analysis

  • GODREJ INDUSTRIES's cash flow from operating activities (CFO) during FY18 stood at Rs 17 billion, an improvement of 196.8% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs -10 billion, an improvement of 333.9% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs -10 billion on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs -3 billion from the Rs -2 billion net cash flows seen during FY17.

GODREJ INDUSTRIES 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 5,694 16,900 196.8%
Cash Flow from Investing Activities Rs m -2,345 -10,176 -
Cash Flow from Financing Activities Rs m -5,280 -9,593 -
Net Cash Flow Rs m -1,931 -2,868 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for GODREJ INDUSTRIES

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 18.8, an improvement from the EPS of Rs 13.6 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 610.4, stands at 44.0 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 5.2 times, while the price to sales ratio stands at 2.2 times.
  • The company's price to cash flow (P/CF) ratio stood at 48.7 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 248.9 278.2
TTM Earnings per share Rs 13.6 18.8
Diluted earnings per share Rs 13.7 18.8
Price to Cash Flow x 77.9 48.7
TTM P/E ratio x 44.0 44.0
Price / Book Value ratio x 4.5 5.2
Market Cap Rs m 205,180 205,027
Dividends per share (Unadj.) Rs 1.8 1.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for GODREJ INDUSTRIES

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 0.9x during FY18, from 1.0x 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 deteriorated and stood at 2.0x during FY18, from 1.6x 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 16.1% during FY18, from 14.4% 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 25.3% during FY18, from 21.9% 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 6.6% during FY18, from 5.7% 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 1.0 0.9
Debtors’ Days Days 40 41
Interest coverage x 1.6 2.0
Debt to equity ratio x 0.5 0.2
Return on assets % 5.7 6.6
Return on equity % 14.4 16.1
Return on capital employed % 21.9 25.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



To see how GODREJ INDUSTRIES has performed over the last 5 years, please visit here.

GODREJ INDUSTRIES Share Price Performance

Over the last one year, GODREJ INDUSTRIES share price has moved up from Rs 612.6 to Rs 610.4, registering a loss of Rs 2.2 or around 0.4%.

Overall, the S&P BSE SENSEX is up 19.8% over the year.

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

Equitymaster requests your view! Post a comment on "GODREJ INDUSTRIES 2017-18 Annual Report Analysis". Click here!

  

Related Views on News

GODREJ INDUSTRIES Announces Quarterly Results (4QFY19); Net Profit Up 41.4% (Quarterly Result Update)

May 14, 2019 | Updated on May 14, 2019

For the quarter ended March 2019, GODREJ INDUSTRIES has posted a net profit of Rs 2 bn (up 41.4% YoY). Sales on the other hand came in at Rs 30 bn (up 28.3% YoY). Read on for a complete analysis of GODREJ INDUSTRIES's quarterly results.

GODREJ INDUSTRIES Announces Quarterly Results (3QFY19); Net Profit Down 117.2% (Quarterly Result Update)

Feb 22, 2019 | Updated on Feb 22, 2019

For the quarter ended December 2018, GODREJ INDUSTRIES has posted a net profit of Rs 225 m (down 117.2% YoY). Sales on the other hand came in at Rs 25 bn (up 0.6% YoY). Read on for a complete analysis of GODREJ INDUSTRIES's quarterly results.

Galaxy Surfactants Ltd. (IPO)

Jan 27, 2018

Should you subscribe to the IPO of Galaxy Surfactants Ltd?

More Views on News

Most Popular

3 Indian Stocks Replicating Amazon's Successful Strategy(The 5 Minute Wrapup)

May 10, 2019

The one critical element that has made Amazon a force to reckon with...

My Top 7 Stocks to Profit from Sensex 100,000(The 5 Minute Wrapup)

May 16, 2019

Tanushree Banerjee explains everything you need to know about the Rebirth of India and Sensex 100,000.

A Simple Checklist for Picking Great Dividend Stocks(Profit Hunter)

May 9, 2019

A filtered, neat list of high-dividend stocks with all this dirty work already done for you.

3 Stocks to Bet on to Become a 'Dividend Millionaire'(Profit Hunter)

May 14, 2019

As markets continue to rattle amid earning season, upcoming elections, volatile crude price and US China trade war, it's a great idea to add some stability to your portfolio by adding dividend stocks.

The Bitter Pill that Will Lay the Foundation for Sensex 100,000(The 5 Minute Wrapup)

May 14, 2019

These companies will help the Sensex more than double from current levels.

More

Get the Indian Stock Market's
Most Profitable Ideas

How To Beat Sensex Guide 2019
Get our special report, How to Beat Sensex Nearly 3X Now!
We will never sell or rent your email id.
Please read our Terms

TRACK GODREJ INDUSTRIES

  • Track your investment in GODREJ INDUSTRIES with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
  • Add To MyStocks

MORE ON GODREJ INDUSTRIES

GODREJ INDUSTRIES - AMAR REMEDIES COMPARISON

COMPARE GODREJ INDUSTRIES WITH

MARKET STATS