GODREJ INDUSTRIES 2020-21 Annual Report Analysis

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GODREJ INDUSTRIES 2020-21 Annual Report Analysis
Tue, 26 Oct

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 4.6% 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 % 4.6 0.4
* 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 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 575.5, stands at 177.7 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 1.8 times, while the price to sales ratio stands at 1.4 times.
  • The company's price to cash flow (P/CF) ratio stood at 69.0 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 24.4 69.0
TTM P/E ratio x 177.6 177.7
Price / Book Value ratio x 2.4 1.8
Market Cap Rs m 193,636 193,670
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 377.7 to Rs 575.5, registering a gain of Rs 197.8 or around 52.4%.

Overall, the S&P BSE SENSEX is up 50.8% over the year.

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

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Related Views on News

GODREJ INDUSTRIES Announces Quarterly Results (1QFY22); Net Profit Up 222.1% (Quarterly Result Update)

Aug 16, 2021 | Updated on Aug 16, 2021

For the quarter ended June 2021, GODREJ INDUSTRIES has posted a net profit of Rs 1 bn (up 222.1% YoY). Sales on the other hand came in at Rs 29 bn (up 46.0% YoY). Read on for a complete analysis of GODREJ INDUSTRIES's quarterly results.

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.

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