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GODREJ INDUSTRIES 2017-18 Annual Report Analysis
Sat, 31 Mar

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 9.4% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 150.6% YoY during the fiscal. Operating profit margins witnessed a growth and stood at 3.7% in FY18 as against 8.0% in FY17.
  • Depreciation charges increased by 18.3% and finance costs increased by 2.8% YoY, respectively.
  • Other income grew by 597.7% YoY.
  • Net profit for the year grew by 22.7% YoY.
  • Net profit margins during the year grew from 1.4% in FY17 to 1.6% in FY18.

GODREJ INDUSTRIES Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 82,477 90,271 9.4%
Other income Rs m 1,689 11,782 597.7%
Total Revenues Rs m 84,166 102,053 21.3%
Gross profit Rs m 6,637 -3,359 -150.6%
Depreciation Rs m 1,481 1,753 18.3%
Interest Rs m 4,018 4,132 2.8%
Profit before tax Rs m 2,826 2,538 -10.2%
Tax Rs m 1,674 1,125 -32.8%
Profit after tax Rs m 1,152 1,413 22.7%
Gross profit margin % 8.0 -3.7
Effective tax rate % 59.2 44.3
Net profit margin % 1.4 1.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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GODREJ INDUSTRIES Balance Sheet Analysis

  • The company's current liabilities during FY18 stood at Rs 111 billion as compared to Rs 87 billion in FY17, thereby witnessing an increase of 26.6%.
  • Long-term debt down at Rs 10 billion as compared to Rs 15 billion during FY17, a fall of 36.9%.
  • Current assets rose 4% and stood at Rs 87 billion, while fixed assets rose 15% and stood at Rs 75 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 162 billion as against Rs 149 billion during FY17, thereby witnessing a growth of 9%.

GODREJ INDUSTRIES Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 31,884 33,268 4.3
 
Current Liabilities Rs m 87,449 110,678 26.6
Long-term Debt Rs m 15,083 9,523 -36.9
Total Liabilities Rs m 149,310 162,222 8.6
 
Current assets Rs m 83,857 87,194 4.0
Fixed Assets Rs m 65,453 75,028 14.6
Total Assets Rs m 149,310 162,222 8.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, 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 196.6% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs -10 billion, an improvement of 333.2% 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 16,890 196.6%
Cash Flow from Investing Activities Rs m -2,345 -10,158 -
Cash Flow from Financing Activities Rs m -5,280 -9,593 -
Net Cash Flow Rs m -1,931 -2,861 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for GODREJ INDUSTRIES

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 4.2, an improvement from the EPS of Rs 3.4 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 547.9, stands at 36.8 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 5.5 times, while the price to sales ratio stands at 2.0 times.
  • The company's price to cash flow (P/CF) ratio stood at 63.8 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 245.4 268.4
TTM Earnings per share Rs 3.4 4.2
Diluted earnings per share Rs 3.4 4.2
Price to Cash Flow x 64.5 63.8
TTM P/E ratio x 86.9 36.8
Price / Book Value ratio x 4.5 6.1
Market Cap Rs m 144,389 201,965
Dividends per share (Unadj.) Rs 1.8 1.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for GODREJ INDUSTRIES

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 0.8x 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 1.6x during FY18, from 1.7x 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 4.2% during FY18, from 3.6% 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 15.6% during FY18, from 14.6% 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 declined and down at 3.4% during FY18, from 3.5% 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 0.8
Debtors’ Days Days 4 4
Interest coverage x 1.7 1.6
Debt to equity ratio x 0.5 0.3
Return on assets % 3.5 3.4
Return on equity % 3.6 4.2
Return on capital employed % 14.6 15.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, 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 504.5 to Rs 547.9, registering a gain of Rs 43.4 or around 8.6%.

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

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

Annual Report FAQs

What is the current share price of GODREJ INDUSTRIES?

GODREJ INDUSTRIES currently trades at Rs 840.0 per share. You can check out the latest share price performance of GODREJ INDUSTRIES here...

What was the revenue of GODREJ INDUSTRIES in FY18? How does it compare to earlier years?

The revenues of GODREJ INDUSTRIES stood at Rs 102,053 m in FY18, which was up 21.3% compared to Rs 84,166 m reported in FY17.

GODREJ INDUSTRIES' revenue has grown from Rs 79,700 m in FY14 to Rs 102,053 m in FY18.

Over the past 5 years, the revenue of GODREJ INDUSTRIES has grown at a CAGR of 6.4%.

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

The net profit of GODREJ INDUSTRIES stood at Rs 1,413 m in FY18, which was up 22.7% compared to Rs 1,152 m reported in FY17.

This compares to a net profit of Rs 779 m in FY16 and a net profit of Rs 3,822 m in FY15.

Over the past 5 years, GODREJ INDUSTRIES net profit has grown at a CAGR of -16.8%.

What does the cash flow statement of GODREJ INDUSTRIES 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 INDUSTRIES reveals:

  • Cash flow from operations increased in FY18 and stood at Rs 16,890 m as compared to Rs 5,694 m in FY17.
  • Cash flow from investments decreased in FY18 and stood at Rs -10,158 m as compared to Rs -2,345 m in FY17.
  • Cash flow from financial activity decreased in FY18 and stood at Rs -9,593 m as compared to Rs -5,280 m in FY17.

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

(Rs m)FY14FY15FY16FY17FY18
From Operations-3,939-10,4961,9865,69416,890
From Investments-9,016-4,581-1,877-2,345-10,158
From Financial Activity14,20214,09523-5,280-9,593
Net Cashflow1,255-988164-1,931-2,861

What does the Key Ratio analysis of GODREJ INDUSTRIES 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 INDUSTRIES reveals:

  • Operating profit margins witnessed a growth and stood at 3.7% in FY18 as against 8.0% in FY17.
  • Net profit margins grew from 1.4% in FY17 to 1.6% in FY18.
  • Debt to Equity ratio for FY18 stood at 0.3 as compared to 0.5 in FY17.

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

 FY14FY15FY16FY17FY18
Operating Profit Margin (%)6.67.46.08.0-3.7
Net Profit Margin (%)3.84.21.11.41.6
Debt to Equity Ratio (x)0.40.60.50.50.3

Read: Latest Annual Report Analysis of GODREJ INDUSTRIES

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