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Godrej Industries

Capital Market/ 15:49 , May 28, 2010

Estate and property developments sales increased by 50% for FY10

The consolidated net sales for Q4 have increased by 16% to Rs 974.96 crore. OPM of the company has turned negative due to overall increase in expenditure. Due to other income, there was profit before tax before exceptional items, which stood at Rs 43.97 crore.

The consolidated net sales for FY10 grew by 2% to Rs 3507.92 crore. OPM has decreased by 40 basis points to 4% due to rise the raw material cost, cost of sales of property developments and staff cost. The profit before tax before exceptional items stood at Rs 107.33 crore, inclined by 338% due to increase in other income.

Commenting on the performance, Mr. A.B. Godrej Chairman, Godrej Industries Limited, said:

Godrej Industries' business performance has once again proved that its vision, operational excellence, understanding of consumers, emphasis on innovation and above all, its values, have held it in good stead during a very trying economic period. During the year gone by most our businesses have done significantly better than last year. Most notably, a successful IPO by Godrej Properties and a series of accretive acquisitions by Godrej Consumer Products prove that we are poised to make the most of a future economic upswing even as we successfully weather a more recent recessionary environment.

Our chemicals business bounced back sharply and bore testament to a fruitful focus on operational excellence and the effort to de-risk our business model. Godrej's agri-businesses too have taken on a remarkably positive trajectory and have delivered value over the last year.

The Godrej Masterbrand and its portfolio of product brands have grown their equity and are today acknowledged as leading brands that signal a brighter life to the vast constituency of Godrej consumers. A constant focus on innovation as the enabler of growth and customercentric marketing continue to be the catalysts for the organization's prowess at building powerful brands.

True to our corporate culture, these developments have been accompanied by a concerted effort to build social capital through a judicious investment in social initiatives related to health, education, environment and the reduction of social iniquity. Clearly, the last year has set the tone for a future that promises to be even brighter for each of our businesses and their stakeholders.

Company's performance

Consolidated results

For quarter ended March 2010

(Figures have been derived by subtracting nine months numbers from year end)

The net sales have increased by 16% to Rs 974.96 crore. OPM of the company has turned negative due to overall increase in expenditure. The raw material cost increased by 130 basis points to 67%, cost of sales of property developments by 640 basis points to 13%, purchased of traded goods by 30 basis points to 2% and staff cost by 210 basis points to 7% of adjusted net sales. As a result, there was an operating loss of Rs 11.07 crore

Other income has increased by 165% to Rs 151.09 crore. The interest cost remained almost stagnant at Rs 83.05 crore. Depreciation has increased by 22% to Rs 13 crore. Due to other income, there was profit before tax before exceptional items, which stood at Rs 43.97 crore.

Exceptional income inclined by 29% to Rs 52.37 crore. The tax outgo stood at Rs 18.70 crore. The net profit after considering share of profit from associates companies and minority interest has increased by 124% to Rs 76.42 crore due other income and EO income

For FY10

Net sales grew by 2% to Rs 3507.92 crore. OPM has decreased by 40 basis points to 4% due to rise the raw material cost by 36 basis points to 68%, cost of sales of property developments by 211 basis points to 6% and staff cost by 65 basis points to 6% of adjusted net sales. There was decline in other expenditure by 235 basis points to 14% and purchase of traded goods by 36 basis points to 3% adjusted net sales. The operating profit has decreased by 6% to Rs 139.46 crore.

Other income has inclined by 132% to 167.66 crore. Interest cost has remained stable to Rs 149.62 crore. Depreciation has increased by 7% to Rs 50.17 crore. The profit before tax before exceptional items stood at Rs 107.33 crore, inclined by 338% due to increase in other income.

Exceptional income has declined by 1% to Rs 105.64 crore which is a profit on sale of long term investments. Total tax outgo decreased by 16% to Rs 44.76 crore. The net profit after considering share of profit from associates companies and minority interest has increased by 82% to Rs 203.25 crore due to increase in other income.

Standalone results

For quarter ended March 2010

(Figures have been derived by subtracting nine months numbers from year end)

The sales have inclined by 21% to Rs 227.84 crore. OPM has turned negative due to rise in staff cost by 340 basis points to 16% and raw material cost by 60 basis points to 63% of adjusted net sales. As a result, the operating loss stood at Rs 7.36 crore

Other income has decreased by 9% to Rs 4.08 crore. There was a fall in interest cost by 17% to Rs 14.23 crore. Depreciation has increased by 13% to Rs 7.54 crore. Due to interest cost and depreciation, there was loss before tax before exceptional items of Rs 25.05 crore.

Exceptional items has inclined by 56% to Rs 51.31 crore. There was tax credit of Rs 0.74 crore. The net profit increased by 103% to Rs 27 crore due to EO income.

For FY10

Net sales has de-grown by 1% to Rs 874.75 crore. OPM of the company has increased by 440 basis points to 5.9% due to decline in raw material cost by 322 basis points to 59% and other expenditure by 302 basis points to 22% of adjusted net sales. However, there was an incline in staff cost by 220 basis points to 12% of adjusted net sales. As a result, the operating profit has inclined by 283% to Rs 51.68 crore

Other income has declined by 28% at Rs 12.57 crore. There was an interest cost of Rs 60.25 crore, decline of 1%. Depreciation cost increased by 7% to Rs 28.39 crore. As a result of increase in depreciation, there was loss before tax and exceptional items of Rs 24.39 crore.

Exceptional income has inclined by 43% to Rs 104.38 crore which is a profit on sale of long term investments. There was a tax credit of Rs 0.93 crore. The net profit has zoomed by 348% to Rs 80.92 crore due to exceptional income.

Consolidated Segmented results

Chemicals

The revenues inclined by 30% to Rs 209.88 crore for Q4. PBIT margins of the division stood at 7.7%. The PBIT stood at Rs 16.22 crore. The category contributed around 18% to the revenues while the contribution to total PBIT stood at 7%.

For FY10, the revenue of this category remained stagnant at Rs 781.3 crore. The Specialty Fatty Acids business has witnessed a growth of 59% in FY10 and the Surfactant business has witnessed a growth of 41%.PBIT margins of the division stood at 6.7%. The PBIT has stood at Rs 52.38 crore. The category contributed around 22% to the revenues while the contribution to total PBIT stood at 10%.

Animal Feeds

Revenues has grown by 18% to Rs 309.88 crore for Q4. PBIT margin have decreased by 140 basis points to 4.5%. As a result, there was decrease in PBIT by 10% to Rs 13.96 crore. The category contributed around 27% to the revenues while the contribution to total PBIT stood at 6%.

For FY10, the revenue grew by 16% to Rs 1141.79 crore. PBIT margin of the division has increased by 30 basis points to 3.4%. As a result, PBIT increased by 29% to Rs 38.80 crore. The category contributed around 27% to the revenues while the contribution to total PBIT stood at 8%.

Animal Feed division processed approx. 730,000 MT of feed in FY 2009-10 with 250,000 MT of Cattle feed, 350,000 MT of Broiler feed, 110,000 MT of Layer feed and 20,000 MT of Aqua feed. Bovino, a compound cattle feed, which has the potential to improve the milk yield, SNF (Solids-not-fat) and fat content in milk had a growth of 70% over the previous year. During the year, cattle feed concentrate for cows and buffaloes was launched in North India under the brand MOO Magimix

Vegetable oils

Sales inclined by 88% during Q4 to Rs 170.38 crore. The segment contributed 15% to total revenues. There was a Profit before interest and tax of Rs 1.15 crore due to turn in PBIT margin to 0.7%.

For FY10, the revenue has increased by 7% to Rs 576.43 crore. PBIT margin turned positive. As a result, there was a profit before interest and tax of 0.68 crore. The category contributed around 15% to the total revenues.

Estate and property developments

Sales of this business grew by 112% to Rs 300.25 crore for Q4. PBIT margin has declined by 490 basis points to 47.8%. As a result, PBIT increase by 93% to Rs 143.57 crore. The category contributed around 26% to the company's revenues and 66% to total PBIT.

For FY10, the revenue increased by 50% to Rs 480.12 crore. PBIT margin have declined by 300 basis points to 51.2%. As a result, the PBIT inclined by 42% to Rs 245.92 crore. The category contributed around 9% to the revenues and 49% to total PBIT.

Godrej Properties witnessed considerable momentum in sales in FY 2010. Approx. 1.89 mn sq. ft. of area was booked during the year. 9 mn sq. ft. of developed area was handed over in FY 2010, significantly higher compared to 3.7 mn sq. ft. delivered from inception until FY 2009. Approx. 82 mn. sq. ft. of upcoming developable area.

Beverage and foods

The revenue has decreased by 15% to Rs 42.8 crore for Q4. Margin turned negative. As a result, loss before interest and tax stood at Rs 8.41 crore. The category contributed around 4% to the revenues.

For FY10, the revenue decreased by 9% to Rs 160.64 crore. PBIT margins turned negative. As a result, loss before interest and tax stood at Rs 15.62 crore. The category contributed around 5% to the company's revenues.

Finance and investments

This business revenue has increased by 3% to Rs 44.20 crore and PBIT has inclined by 3% to Rs 44.21 crore for Q4. The category contributed around 4% to the revenues and 20% of total PBIT.

For FY10, this business revenue has increased by 20% to Rs 126.85 crore while PBIT has increased by 9% to Rs 114.32 crore. The category contributed around 3% to the revenues and 23% of total PBIT.

Standalone Segmented results

Chemicals

The revenues inclined by 30% to Rs 209.8 crore for Q4. PBIT margins turn around and stood at 7.7%. As a result, PBIT stood at Rs 16.20 crore. The category contributed around 78% to the revenues and 23% to total PBIT.

For FY10, the revenue remained stagnant at Rs 781.24 crore. PBIT margins turnaround and stood at 6.7%. As a result, the PBIT stood at Rs 52.38 crore. The category contributed around 80% to the revenues and 23% to total PBIT.

Estate

Sales has fallen by 12% to Rs 6.8 crore. PBIT margin has declined by 510 basis points to 55.4%. As a result, PBIT decrease by 19% to Rs 3.77 crore. The category contributed around 3% to the revenues and 5% to total PBIT.

For FY10, the revenue decreased by 12% to Rs 27.75 crore. PBIT margin have declined by 350 basis points to 65.5%. As a result, the PBIT declined by 16% to Rs 18.19 crore. The category contributed around 3% to the revenues and 8% to total PBIT.

Finance and investments

The revenue and PBIT has decreased by 2% to Rs 51.75 crore for the quarter. The category contributed around 19% to the revenues and 74% of total PBIT.

For FY10, this revenue increased by 16% to Rs 170.82 crore while PBIT has increased by 7% to Rs 158.28 crore. The category contributed around 15% to the revenues and 71% of total PBIT.

Other Developments

The board has recommended a final dividend of Rs 1.50 per share on face value of Re. 1 each.

The FMCG business has consolidated Household care products Godrej Sara Lee and purchased the remaining 51% stake from Sara Lee Corp. Godrej Consumer Products (GCPL) has been able to successfully acquire and integrate strong, local, personal and household care brands in key emerging markets. It has acquired Megasari, Tura and Issue group in 2010.

Valuation

The scrip was trading at Rs 146.40 at BSE on 27th May 2010.

The total promoters holding in the company stand at 79.1%.

Godrej Industries: Consolidated Results

 

1003(03)0903(03)Var. (%)1003(12)0903(12)Var. (%)
Sales974.96840.71163507.923434.482
OPM (%)-1.13.64.04.3
OP-11.0730.16PL139.46148.72-6
Other Income151.0957.08165167.6672.41132
PBIDT140.0287.2460307.12221.1339
Interest (Net)83.0582.860149.62149.590
PBDT56.974.38999157.5071.54120
Depreciation13.0010.632250.1747.037
PBT before Exceptional items43.97-6.25LP107.3324.51338
Exceptional items52.3740.4829105.64106.56-1
PBT after Exceptional items96.3434.23181212.97131.0762
Total Tax18.7016.431444.7653.37-16
PAT from ordinary activities77.6417.80336168.2177.70116
EO (net of tax)0.006.97-1000.0021.22-100
Prior period items0.000.01-1000.00-0.85-100
Net Profit before share of profit in associates companies & MI77.6424.78213168.2198.0772
Share of profit/loss in assocaite companies25.0313.548581.0336.22124
Minority Interest-26.25-4.18528-45.99-22.82102
Net profit76.4234.14124203.25111.4782
EPS *4.30.83.80.9
*Annualised on Equity capital of Rs 31.76 crore.
Face value of Rs 1/- per share.
Figures in Rs crore
LP: Loss to Profit PL: Profit to loss
Source: Capitaline Corporate Database

Godrej Industries: Standalone Results 

 

1003(03)0903(03)Var. (%)1003(12)0903(12)Var. (%)
Sales227.84187.8721874.75880.97-1
OPM (%)-3.2-1.85.91.5
OP-7.36-3.3412051.6813.50283
Other Income4.084.50-912.5717.39-28
PBIDT-3.281.16PL64.2530.89108
Interest (Net)14.2317.18-1760.2561.06-1
PBDT-17.51-16.0294.00-30.17LP
Depreciation7.546.661328.3926.467
PBT before Exceptional Items-25.05-22.6810-24.39-56.63-57
Exceptional Items51.3132.8556104.3873.1343
PBT after EO26.2610.1715879.9916.50385
Total Tax-0.74-2.87-74-0.93-2.18-57
PAT from ordianry activities27.0013.0410780.9218.68333
EO (net of tax)0.000.26-1000.000.26-100
Prior period items0.000.000.00-0.86-100
Net Profit27.0013.3010380.9218.08348
EPS *
*Annualised on Equity capital of Rs 31.76 crore.
Face value of Rs 1/- per share.
Figures in Rs crore
LP: Loss to Profit PL: Profit to loss
Source: Capitaline Corporate Database

Godrej Industries: Consolidated Segment Revenue

 

Segment Revenue1003(03)Var. %% to Total1003(12)Var. %% to Total
Chemicals209.883018781.30022
Animal Feeds309.8818271141.791627
Veg. Oils170.388815576.43715
Estate & property development300.2511226480.12509
Household Insecticides-0.02019.59-905
Beverages & foods42.80-154160.64-95
Finance & Investments44.2034126.85203
Others88.52-328494.50-414
Total1165.89241003781.225100
Less: Inter Segment Rev0.000.00
Net Sales / Income from Operations1165.89243781.225
Segment Results (PBIT)
Chemicals16.22LP752.38LP10
Animal Feeds13.96-10638.80298
Veg. Oils1.15LP10.68LP0
Estate & property development143.579366245.924249
Household Insecticides0.00-10001.65-950
Beverages & foods-8.41PL-4-15.62421-3
Finance & Investments44.21320114.32923
Others8.02-26462.34312
TOTAL218.7248100500.4732100
Less: Interest83.050149.620
Add: Other unallocable expenditure net of unallocable income-39.3330-137.8840
Profit before tax expenses96.34181212.9762
Capital Employed
Chemicals266.00-18266.00-18
Animal Feeds-22.39-1-22.39-130-1
Veg. Oils23.885123.8851
Estate & property development1546.8764451546.876445
Household Insecticides0.00-10000.000
Beverages & foods63.24-10263.24-102
Finance & Investments1335.53-4391335.53-439
Others255.45237255.45237
Total3468.58151003468.5815100
Unallocated Corporate Capital Employed-1702.996-1702.996
Total Capital Employed1765.59251765.5925
Figures in Rs Crore
Source: Capitaline Corporate Database

Godrej Industries: Standalone Segment Revenue

 

Segment Revenue1003(03)Var. %% to Total1003(12)Var. %% to Total
Chemicals209.803078781.24080
Estate6.80-12327.75-123
Finance & Investments51.75-219170.821615
Others2.35-31111.89-181
Total270.7020100991.702100
Less: Inter Segment Rev0.000.00
Net Sales / Income from Operations270.7020991.702
Segment Results (PBIT)
Chemicals16.20LP2352.38LP23
Estate3.77-19518.19-168
Finance & Investments51.75-274158.28771
Others-1.7414-2-5.3912-2
TOTAL69.9845100223.4653100
Less: Interest14.23-1760.25-1
Add: Other unallocable expenditure net of unallocable income-29.4940-83.2222
Profit before tax expenses26.2615879.99385
Capital Employed
Chemicals266.00616266.00616
Estate61.1244461.12444
Finance & Investments1276.63-5781276.63-578
Others22.95-10122.95-101
Total1626.70-21001626.70-2100
Unallocated Corporate Capital Employed-604.00-5-604.00-5
Total Capital Employed1022.7001022.700
Figures in Rs Crore
Source: Capitaline Corporate Database

 



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