GODREJ INDUSTRIES 2021-22 Annual Report Analysis

Sun, 24 Jul

GODREJ INDUSTRIES has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

GODREJ INDUSTRIES Income Statement Analysis

• Operating income during the year rose 51.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 204.9% YoY during the fiscal. Operating profit margins witnessed a fall and down at 6.8% in FY22 as against 3.4% in FY21.
• Depreciation charges increased by 12.9% and finance costs increased by 32.9% YoY, respectively.
• Other income grew by 41.3% YoY.
• Net profit for the year grew by 1733.3% YoY.
• Net profit margins during the year grew from 0.4% in FY21 to 5.0% in FY22.

GODREJ INDUSTRIES Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	93,335	141,302	51.4%
Other income	Rs m	6,613	9,345	41.3%
Total Revenues	Rs m	99,948	150,647	50.7%
Gross profit	Rs m	3,148	9,596	204.9%
Depreciation	Rs m	2,423	2,736	12.9%
Interest	Rs m	4,689	6,231	32.9%
Profit before tax	Rs m	2,647	9,974	276.8%
Tax	Rs m	2,262	2,899	28.2%
Profit after tax	Rs m	386	7,075	1,733.3%
Gross profit margin	%	3.4	6.8
Effective tax rate	%	85.4	29.1
Net profit margin	%	0.4	5.0

Revealing on April 30: Are You Ready for the Upcoming Election Surprise?

GODREJ INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 151 billion as compared to Rs 120 billion in FY21, thereby witnessing an increase of 25.2%.
• Long-term debt stood at Rs 55 billion as compared to Rs 31 billion during FY21, a growth of 75.3%.
• Current assets rose 16% and stood at Rs 205 billion, while fixed assets rose 20% and stood at Rs 131 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 336 billion as against Rs 286 billion during FY21, thereby witnessing a growth of 18%.

GODREJ INDUSTRIES Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	75,451	71,181	-5.7
Current Liabilities	Rs m	120,432	150,754	25.2
Long-term Debt	Rs m	31,106	54,534	75.3
Total Liabilities	Rs m	286,038	336,218	17.5
Current assets	Rs m	176,172	204,720	16.2
Fixed Assets	Rs m	109,866	131,498	19.7
Total Assets	Rs m	286,038	336,218	17.5

GODREJ INDUSTRIES Cash Flow Statement Analysis

• GODREJ INDUSTRIES's cash flow from operating activities (CFO) during FY22 stood at Rs -18 billion, an improvement of 161.3% on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs 428 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs 19 billion on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 2 billion from the Rs -472 million net cash flows seen during FY21.

GODREJ INDUSTRIES Cash Flow Statement 2021-22

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-21	Mar-22
Cash Flow from Operating Activities	Rs m	-6,722	-17,562	-
Cash Flow from Investing Activities	Rs m	-51,521	428	-
Cash Flow from Financing Activities	Rs m	57,722	19,159	-66.8%
Net Cash Flow	Rs m	-472	2,060	-

Current Valuations for GODREJ INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 21.0, an improvement from the EPS of Rs 1.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 461.0, stands at 21.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.2 times, while the price to sales ratio stands at 1.1 times.
• The company's price to cash flow (P/CF) ratio stood at 19.3 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Sales per share (Unadj.)	Rs	277.3	419.8
TTM Earnings per share	Rs	1.1	21.0
Diluted earnings per share	Rs	1.1	21.0
Price to Cash Flow	x	65.0	19.3
TTM P/E ratio	x	490.5	21.9
Price / Book Value ratio	x	1.8	2.7
Market Cap	Rs m	132,726	189,219
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for GODREJ INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.4x during FY22, from 1.5x during FY21. 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 2.6x during FY22, from 1.6x during FY21. 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 9.9% during FY22, from 0.5% during FY22. 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 12.9% during FY22, from 6.9% during FY21. 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 4.0% during FY22, from 1.8% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Current ratio	x	1.5	1.4
Debtors’ Days	Days	6	4
Interest coverage	x	1.6	2.6
Debt to equity ratio	x	0.4	0.8
Return on assets	%	1.8	4.0
Return on equity	%	0.5	9.9
Return on capital employed	%	6.9	12.9

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 547.6 to Rs 461.0, registering a loss of Rs 86.6 or around 15.8%.

Overall, the S&P BSE SENSEX is up 6.1% over the year.

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

Read: Latest Annual Report Analysis of GODREJ INDUSTRIES