GODREJ INDUSTRIES 2019-20 Annual Report Analysis

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GODREJ INDUSTRIES 2019-20 Annual Report Analysis
Fri, 20 Nov

GODREJ INDUSTRIES has announced its results for the year ended March 2020. Let us have a look at the detailed performance review of the company during FY19-20.

GODREJ INDUSTRIES Income Statement Analysis

  • Operating income during the year rose 4.1% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 16.7% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 9.4% in FY20 as against 11.8% in FY19.
  • Depreciation charges increased by 43.3% and finance costs decreased by 2.9% YoY, respectively.
  • Other income grew by 18.7% YoY.
  • Net profit for the year declined by 26.5% YoY.
  • Net profit margins during the year declined from 7.6% in FY19 to 5.3% in FY20.

GODREJ INDUSTRIES Income Statement 2019-20

No. of Mths Year Ending 12 Mar-19* 12 Mar-20* % Change
Net Sales Rs m 108,482 112,908 4.1%
Other income Rs m 4,815 5,716 18.7%
Total Revenues Rs m 113,297 118,624 4.7%
Gross profit Rs m 12,753 10,624 -16.7%
Depreciation Rs m 1,631 2,338 43.3%
Interest Rs m 5,077 4,929 -2.9%
Profit before tax Rs m 10,860 9,073 -16.4%
Tax Rs m 2,222 2,728 22.8%
Profit after tax Rs m 8,637 6,345 -26.5%
Gross profit margin % 11.8 9.4
Effective tax rate % 20.5 30.1
Net profit margin % 7.6 5.3
* 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 FY20 down at Rs 102 billion as compared to Rs 102 billion in FY19, thereby witnessing an decrease of -0.2%.
  • Long-term debt down at Rs 6 billion as compared to Rs 12 billion during FY19, a fall of 48.8%.
  • Current assets rose 21% and stood at Rs 106 billion, while fixed assets rose 7% and stood at Rs 82 billion in FY20.
  • Overall, the total assets and liabilities for FY20 stood at Rs 205 billion as against Rs 183 billion during FY19, thereby witnessing a growth of 12%.

GODREJ INDUSTRIES Balance Sheet as on March 2020

No. of Mths Year Ending 12 Mar-19* 12 Mar-20* % Change
Networth Rs m 43,464 57,867 33.1
 
Current Liabilities Rs m 101,935 101,765 -0.2
Long-term Debt Rs m 11,962 6,127 -48.8
Total Liabilities Rs m 182,713 204,651 12.0
 
Current assets Rs m 87,299 105,732 21.1
Fixed Assets Rs m 75,997 81,672 7.5
Total Assets Rs m 182,713 204,651 12.0
* 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 FY20 stood at Rs 4 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY20 stood at Rs -19 billion, an improvement of 36.5% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY20 stood at Rs 13 billion, an improvement of 28% on a YoY basis.
  • Overall, net cash flows for the company during FY20 stood at Rs -1 billion from the Rs 9 billion net cash flows seen during FY19.

GODREJ INDUSTRIES Cash Flow Statement 2019-20

Particulars No. of months 12 12 % Change
Year Ending Mar-19 Mar-20
Cash Flow from Operating Activities Rs m 12,404 3,940 -68.2%
Cash Flow from Investing Activities Rs m -13,735 -18,743 -
Cash Flow from Financing Activities Rs m 10,557 13,472 27.6%
Net Cash Flow Rs m 9,358 -1,329 -
* 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 18.9, an decline from the EPS of Rs 25.7 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 421.2, stands at 37.9 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 1.2 times.
  • The company's price to cash flow (P/CF) ratio stood at 16.3 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-19* 12 Mar-20*
Sales per share (Unadj.) Rs 322.5 335.6
TTM Earnings per share Rs 25.7 18.9
Diluted earnings per share Rs 25.7 18.9
Price to Cash Flow x 13.8 16.3
TTM P/E ratio x 37.9 37.9
Price / Book Value ratio x 4.2 2.4
Market Cap Rs m 141,666 141,460
Dividends per share (Unadj.) Rs 1.2 0.0
* 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 1.0x during FY20, from 0.9x during FY19. 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 2.8x during FY20, from 3.1x during FY19. 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 declined and down at 11.0% during FY20, from 19.9% during FY20. 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 declined and down at 21.9% during FY20, from 28.8% during FY19. 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 5.5% during FY20, from 7.5% during FY19. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-19* 12 Mar-20*
Current ratio x 0.9 1.0
Debtors’ Days Days 39 50
Interest coverage x 3.1 2.8
Debt to equity ratio x 0.3 0.1
Return on assets % 7.5 5.5
Return on equity % 19.9 11.0
Return on capital employed % 28.8 21.9
* 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 445.1 to Rs 421.2, registering a loss of Rs 24.0 or around 5.4%.

Overall, the S&P BSE SENSEX is up 8.4% over the year.

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

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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 2018-19 Annual Report Analysis (Annual Result Update)

Oct 3, 2019 | Updated on Oct 3, 2019

Here's an analysis of the annual report of GODREJ INDUSTRIES for 2018-19. 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 (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.

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