GODREJ INDUSTRIES 2018-19 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 2018-19 Annual Report Analysis
Thu, 3 Oct

GODREJ INDUSTRIES has announced its results for the year ended March 2019. Let us have a look at the detailed performance review of the company during FY18-19.

GODREJ INDUSTRIES Income Statement Analysis

  • Operating income during the year rose 22.7% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 107.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 11.6% in FY19 as against 6.9% in FY18.
  • Depreciation charges decreased by 1.3% and finance costs increased by 25.0% YoY, respectively.
  • Other income declined by 13.9% YoY.
  • Net profit for the year grew by 78.3% YoY.
  • Net profit margins during the year grew from 5.0% in FY18 to 7.4% in FY19.

GODREJ INDUSTRIES Income Statement 2018-19

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Net Sales Rs m 90,757 111,400 22.7%
Other income Rs m 5,612 4,833 -13.9%
Total Revenues Rs m 96,369 116,232 20.6%
Gross profit Rs m 6,241 12,920 107.0%
Depreciation Rs m 1,753 1,730 -1.3%
Interest Rs m 4,132 5,163 25.0%
Profit before tax Rs m 5,969 10,860 81.9%
Tax Rs m 1,125 2,222 97.5%
Profit after tax Rs m 4,844 8,637 78.3%
Gross profit margin % 6.9 11.6
Effective tax rate % 18.8 20.5
Net profit margin % 5.0 7.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



JUST IN: Limited-Time Access to Full Transcript of Our Urgent Broadcast on India's Revival

GODREJ INDUSTRIES Balance Sheet Analysis

  • The company's current liabilities during FY19 stood at Rs 102 billion as compared to Rs 89 billion in FY18, thereby witnessing an increase of 14.5%.
  • Long-term debt stood at Rs 13 billion as compared to Rs 10 billion during FY18, a growth of 32.4%.
  • Current assets rose 0% and stood at Rs 87 billion, while fixed assets rose 19% and stood at Rs 76 billion in FY19.
  • Overall, the total assets and liabilities for FY19 stood at Rs 183 billion as against Rs 170 billion during FY18, thereby witnessing a growth of 8%.

GODREJ INDUSTRIES Balance Sheet as on March 2019

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Networth Rs m 33,344 43,464 30.4
 
Current Liabilities Rs m 89,050 101,935 14.5
Long-term Debt Rs m 9,523 12,606 32.4
Total Liabilities Rs m 169,950 183,407 7.9
 
Current assets Rs m 87,194 87,261 0.1
Fixed Assets Rs m 64,102 75,997 18.6
Total Assets Rs m 169,950 183,407 7.9
* 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 FY19 stood at Rs 12 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY19 stood at Rs -14 billion, an improvement of 35.2% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY19 stood at Rs 11 billion, an improvement of 210% on a YoY basis.
  • Overall, net cash flows for the company during FY19 stood at Rs 9 billion from the Rs -3 billion net cash flows seen during FY18.

GODREJ INDUSTRIES Cash Flow Statement 2018-19

Particulars No. of months 12 12 % Change
Year Ending Mar-18 Mar-19
Cash Flow from Operating Activities Rs m 16,890 12,459 -26.2%
Cash Flow from Investing Activities Rs m -10,158 -13,735 -
Cash Flow from Financing Activities Rs m -9,593 10,557 -
Net Cash Flow Rs m -2,858 9,413 -
* 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 25.7, an improvement from the EPS of Rs 14.4 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 393.2, stands at 35.7 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 4.2 times, while the price to sales ratio stands at 1.6 times.
  • The company's price to cash flow (P/CF) ratio stood at 12.7 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-18* 12 Mar-19*
Sales per share (Unadj.) Rs 269.9 331.2
TTM Earnings per share Rs 14.4 25.7
Diluted earnings per share Rs 14.4 25.7
Price to Cash Flow x 20.0 12.7
TTM P/E ratio x 35.8 35.7
Price / Book Value ratio x 6.1 4.2
Market Cap Rs m 132,205 132,055
Dividends per share (Unadj.) Rs 1.8 1.2
* 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 deteriorated and stood at 0.9x during FY19, from 1.0x during FY18. 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 3.1x during FY19, from 2.4x during FY18. 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 19.9% during FY19, from 14.5% during FY19. 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 28.6% during FY19, from 23.6% during FY18. 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 7.5% during FY19, from 5.3% during FY18. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-18* 12 Mar-19*
Current ratio x 1.0 0.9
Debtors’ Days Days 40 40
Interest coverage x 2.4 3.1
Debt to equity ratio x 0.3 0.3
Return on assets % 5.3 7.5
Return on equity % 14.5 19.9
Return on capital employed % 23.6 28.6
* 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 down from Rs 506.9 to Rs 393.2, registering a loss of Rs 113.8 or around 22.4%.

Overall, the S&P BSE SENSEX is up 4.6% 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 2018-19 Annual Report Analysis". Click here!

  

Related Views on News

GODREJ INDUSTRIES 2019-20 Annual Report Analysis (Annual Result Update)

Nov 20, 2020 | Updated on Nov 20, 2020

Here's an analysis of the annual report of GODREJ INDUSTRIES for 2019-20. It includes a full income statement, balance sheet and cash flow analysis of GODREJ INDUSTRIES. Also includes updates on the valuation of GODREJ INDUSTRIES.

GODREJ INDUSTRIES Announces Quarterly Results (4QFY20); Net Profit Down 65.4% (Quarterly Result Update)

May 27, 2020 | Updated on May 27, 2020

For the quarter ended March 2020, GODREJ INDUSTRIES has posted a net profit of Rs 722 m (down 65.4% YoY). Sales on the other hand came in at Rs 31 bn (up 5.0% YoY). Read on for a complete analysis of GODREJ INDUSTRIES's quarterly results.

GODREJ INDUSTRIES Announces Quarterly Results (1QFY20); Net Profit Up 196.6% (Quarterly Result Update)

Aug 14, 2019 | Updated on Aug 14, 2019

For the quarter ended June 2019, GODREJ INDUSTRIES has posted a net profit of Rs 1 bn (up 196.6% YoY). Sales on the other hand came in at Rs 28 bn (down 6.1% YoY). Read on for a complete analysis of GODREJ INDUSTRIES's quarterly results.

More Views on News

Most Popular

India: Recovery Stalled by Vaccine Games?(The Honest Truth)

Apr 13, 2021

Ajit Dayal on how India's vaccine strategy will impact the markets.

4 Stocks to Make Your Portfolio Immune to the Second Covid Wave(Profit Hunter)

Apr 6, 2021

Rather than predicting the market, successful investing is more about preparing well and placing your bets accordingly.

A Stock with 700% Return Potential Comes with Additional Payoffs(Profit Hunter)

Apr 15, 2021

Narayana Murthy was one of the first unicorn founders to get the backing of this entity...

Why Did the Market Crash on Monday?(Fast Profits Daily)

Apr 13, 2021

In this video, I'll you what I think is the real reason behind yesterday's market crash.

A Unique Sector for Short-Term Profits(Fast Profits Daily)

Apr 12, 2021

This ignored sector could deliver big short-term profits.

More

India's #1 Trader
Reveals His Secrets

Secret To Increasing Your Trading Profits Today
Get this Special Report,
The Secret to Increasing Your Trading Profits Today, 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 - UNILEVER PLC. COMPARISON

COMPARE GODREJ INDUSTRIES WITH

MARKET STATS