GODREJ INDUSTRIES 2018-19 Annual Report Analysis

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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



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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)

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