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GODREJ INDUSTRIES 2020-21 Annual Report Analysis
Wed, 31 Mar

GODREJ INDUSTRIES has announced its results for the year ended March 2021. Let us have a look at the detailed performance review of the company during FY20-21.

GODREJ INDUSTRIES Income Statement Analysis

  • Operating income during the year fell 18.0% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 68.0% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 3.4% in FY21 as against 8.7% in FY20.
  • Depreciation charges increased by 0.2% and finance costs decreased by 5.0% YoY, respectively.
  • Other income grew by 15.6% YoY.
  • Net profit for the year declined by 93.0% YoY.
  • Net profit margins during the year declined from 4.8% in FY20 to 0.4% in FY21.

GODREJ INDUSTRIES Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m 113,778 93,335 -18.0%
Other income Rs m 5,720 6,613 15.6%
Total Revenues Rs m 119,498 99,948 -16.4%
Gross profit Rs m 9,851 3,148 -68.0%
Depreciation Rs m 2,418 2,423 0.2%
Interest Rs m 4,935 4,689 -5.0%
Profit before tax Rs m 8,218 2,647 -67.8%
Tax Rs m 2,714 2,263 -16.6%
Profit after tax Rs m 5,504 385 -93.0%
Gross profit margin % 8.7 3.4
Effective tax rate % 33.0 85.5
Net profit margin % 4.8 0.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Read Now: We're Bullish on 2 Non-Nifty Stocks

GODREJ INDUSTRIES Balance Sheet Analysis

  • The company's current liabilities during FY21 stood at Rs 120 billion as compared to Rs 102 billion in FY20, thereby witnessing an increase of 18.6%.
  • Long-term debt stood at Rs 31 billion as compared to Rs 6 billion during FY20, a growth of 407.7%.
  • Current assets rose 67% and stood at Rs 176 billion, while fixed assets rose 17% and stood at Rs 110 billion in FY21.
  • Overall, the total assets and liabilities for FY21 stood at Rs 286 billion as against Rs 200 billion during FY20, thereby witnessing a growth of 43%.

GODREJ INDUSTRIES Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Networth Rs m 57,789 75,450 30.6
 
Current Liabilities Rs m 101,574 120,448 18.6
Long-term Debt Rs m 6,126 31,106 407.7
Total Liabilities Rs m 199,501 286,036 43.4
 
Current assets Rs m 105,733 176,172 66.6
Fixed Assets Rs m 93,768 109,865 17.2
Total Assets Rs m 199,501 286,036 43.4
* 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 FY21 stood at Rs -7 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY21 stood at Rs -52 billion, an improvement of 175.3% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY21 stood at Rs 58 billion, an improvement of 328% on a YoY basis.
  • Overall, net cash flows for the company during FY21 stood at Rs -472 million from the Rs -1 billion net cash flows seen during FY20.

GODREJ INDUSTRIES Cash Flow Statement 2020-21

Particulars No. of months 12 12 % Change
Year Ending Mar-20 Mar-21
Cash Flow from Operating Activities Rs m 3,920 -6,636 -
Cash Flow from Investing Activities Rs m -18,743 -51,606 -
Cash Flow from Financing Activities Rs m 13,492 57,722 327.8%
Net Cash Flow Rs m -1,329 -472 -
* 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 1.1, an decline from the EPS of Rs 16.4 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 542.5, stands at 491.1 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 2.0 times.
  • The company's price to cash flow (P/CF) ratio stood at 47.3 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-20* 12 Mar-21*
Sales per share (Unadj.) Rs 338.2 277.3
TTM Earnings per share Rs 16.4 1.1
Diluted earnings per share Rs 16.4 1.1
Price to Cash Flow x 12.0 47.3
TTM P/E ratio x 25.6 491.1
Price / Book Value ratio x 2.4 1.8
Market Cap Rs m 137,783 132,726
Dividends per share (Unadj.) Rs 0.0 0.0
* 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 improved and stood at 1.5x during FY21, from 1.0x during FY20. 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 FY21, from 2.7x during FY20. 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 0.5% during FY21, from 9.5% during FY21. 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 6.9% during FY21, from 20.6% during FY20. 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 1.8% during FY21, from 5.2% during FY20. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-20* 12 Mar-21*
Current ratio x 1.0 1.5
Debtors’ Days Days 5 6
Interest coverage x 2.7 1.6
Debt to equity ratio x 0.1 0.4
Return on assets % 5.2 1.8
Return on equity % 9.5 0.5
Return on capital employed % 20.6 6.9
* 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 283.5 to Rs 542.5, registering a gain of Rs 259.0 or around 91.4%.

Overall, the S&P BSE SENSEX is up 74.1% 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 780.4 per share. You can check out the latest share price performance of GODREJ INDUSTRIES here...

What was the revenue of GODREJ INDUSTRIES in FY21? How does it compare to earlier years?

The revenues of GODREJ INDUSTRIES stood at Rs 99,948 m in FY21, which was down -16.4% compared to Rs 119,498 m reported in FY20.

GODREJ INDUSTRIES' revenue has grown from Rs 84,166 m in FY17 to Rs 99,948 m in FY21.

Over the past 5 years, the revenue of GODREJ INDUSTRIES has grown at a CAGR of 4.4%.

What was the net profit of GODREJ INDUSTRIES in FY21? How does it compare to earlier years?

The net profit of GODREJ INDUSTRIES stood at Rs 385 m in FY21, which was down -93.0% compared to Rs 5,504 m reported in FY20.

This compares to a net profit of Rs 2,914 m in FY19 and a net profit of Rs 1,413 m in FY18.

Over the past 5 years, GODREJ INDUSTRIES net profit has grown at a CAGR of -24.0%.

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 decreased in FY21 and stood at Rs -6,636 m as compared to Rs 3,920 m in FY20.
  • Cash flow from investments decreased in FY21 and stood at Rs -51,606 m as compared to Rs -18,743 m in FY20.
  • Cash flow from financial activity increased in FY21 and stood at Rs 57,722 m as compared to Rs 13,492 m in FY20.

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

(Rs m)FY17FY18FY19FY20FY21
From Operations5,69416,89012,4043,920-6,636
From Investments-2,345-10,158-13,735-18,743-51,606
From Financial Activity-5,280-9,59310,55713,49257,722
Net Cashflow-1,931-2,8619,358-1,329-472

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 fall and stood at 3.4% in FY21 as against 8.7% in FY20.
  • Net profit margins declined from 4.8% in FY20 to 0.4% in FY21.
  • Debt to Equity ratio for FY21 stood at 0.4 as compared to 0.1 in FY20.

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

 FY17FY18FY19FY20FY21
Operating Profit Margin (%)8.0-3.76.48.73.4
Net Profit Margin (%)1.41.62.64.80.4
Debt to Equity Ratio (x)0.50.30.30.10.4

Read: Latest Annual Report Analysis of GODREJ INDUSTRIES

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