The consolidated net sales for Q1 increased by 24% to Rs 964.97 crore. OPM has decreased by 174 basis points to 3.2% due to increase in raw material cost and cost of sales of property developments. Due to other income growth of 729%, there was profit before tax before exceptional items, which stood at Rs 36.16 crore, a growth of 508%.
Commenting on the performance, Mr. A.B. Godrej Chairman, Godrej Industries Limited, said:
I am happy to report that all our operating business and investments have made a great start to the financial year. Our Oleochemical business delivered positive growth on the back of continued efforts to improve efficiency and reduce costs. The business plans to set up a new state of the art manufacturing facility for Oleochemical at Ambernath. Our Agri business under Godrej Agrovet are doing extremely well and continued to deliver strong growth. Good monsoons will provide adequate impetus to this segments and we remain optimistic on its prospects going forward. Godrej Properties has been on a high performance spree with strong growth both in topline and bottomline.
Building strategically on its expanding international footprint, Godrej Consumer Products has completed a series of accretive acquisitions marking the start of the coming together of the Godrej FMCG business and an exciting and challenging opportunity for us.
We continue our strong commitment to our people and building a brighter future and have been recognized as being among India's Top 50 best places to work for by the Economic Times and Great Places to Work Institute.
A constant focus on innovation as the enabler of growth and customer centric marketing continue to be the catalysts for the organisation's powess at building powerful brands that signals a brighter life to the vast constituency of Godrej Consumers. Goodknight Advanced Low Smoke Coils has been voted 'Product of the Year 2010' in the Insect Repellent Category, making it the second consecutive Goodnight win in this consumer driven award.
We are confident that our unique and diverse business model coupled with our CREATE strategy would continue to provide us the momentum to deliver exceptional results.
Company's performance
Consolidated results
For quarter ended June 2010
The net sales have increased by 24% to Rs 964.97 crore. OPM has decreased by 174 basis points to 3.2% due to increased in raw material cost by 440 basis points to 72% and cost of sales of property developments by 270 basis points to 4% of adjusted net sales. However, the other expenditure reduced by good 340 basis points to 13% of adjusted net sales. As a result, the operating profit declined by 19% to Rs 30.71 crore.
Other income has increased by 729% to Rs 38.05 crore. The interest cost declined by19% to Rs 19.67 crore. Depreciation has increased by just 3% to Rs 12.93 crore. Due to other income, there was profit before tax before exceptional items, which stood at Rs 36.16 crore, a growth of 508%.
Exceptional income stood at Rs 8 crore. The tax outgo stood at Rs 10.95 crore, a growth of 154%. The net profit after considering share of profit from associates companies and minority interest has increased by 198% to Rs 48.74 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.
Consolidated Segmented results for Q1 FY11 and FY10
Chemicals
The revenues inclined by 22% to Rs 217.9 crore for Q1. PBIT margins of the division increased by 110 basis points to 9%. As a result, the PBIT increased by 39% to Rs 19.6 crore. The category contributed around 21% to the revenues and to total PBIT.
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 9% to Rs 297.32 crore for Q1. PBIT margin have increased by 50 basis points to 3.7%. As a result, there was increase in PBIT by 25% to Rs 11.14 crore. The category contributed around 29% to the revenues while the contribution to total PBIT stood at 12%.
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%.
Vegetable oils
Sales inclined by 119% during Q1 to Rs 214.6 crore. The segment contributed 21% to total revenues. There was a loss before interest and tax of Rs 0.39 crore due to margin turning negative.
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 206% to Rs 80.4 crore for Q1. PBIT margin has inclined by 470 basis points to 45.6%. As a result, PBIT increase by 241% to Rs 36.64 crore. The category contributed around 8% to the revenues and 40% 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.
Beverage and foods
The revenue has decreased by 3% to Rs 41.07 crore for Q1. Margins are negative. As a result, loss before interest and tax stood at Rs 2.47 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 38% to Rs 21.84 crore while PBIT has declined by 11% to Rs 10.35 crore for Q1. The category contributed around 2% to the revenues and 11% 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.
Other Developments
The board has approved setting up new oleochemicals manufacturing facility at Ambernath at an outlay of Rs 230 crore which will be operational by FY13.
Godrej Consumer Products acquired remaining 51% stake in Godrej Sara Lee. It has alos acquired Issue Group in South America and Argencos in Argentina.
The board has approved for formation of Limited Liability Partnership(s) for joint development of its Vikhroli property of area of 36.5 acres. The net profit will be shared 40:60 between GIL and GPL, and loss if any will be borne by GPL.
Valuation
The scrip is trading at Rs 191.2 at BSE on 28th July 2010.
The total promoters holding in the company stand at 79.1%.
Godrej Industries: Consolidated Results
| 1006(03) | 0906(03) | Var. (%) | 1003(12) | 0903(12) | Var. (%) |
| Sales | 964.97 | 775.44 | 24 | 3507.92 | 3434.48 | 2 |
| OPM (%) | 3.2 | 4.9 | | 4.0 | 4.3 | |
| OP | 30.71 | 38.14 | -19 | 139.46 | 148.72 | -6 |
| Other Income | 38.05 | 4.59 | 729 | 167.66 | 72.41 | 132 |
| PBIDT | 68.76 | 42.73 | 61 | 307.12 | 221.13 | 39 |
| Interest (Net) | 19.67 | 24.24 | -19 | 149.62 | 149.59 | 0 |
| PBDT | 49.09 | 18.49 | 165 | 157.50 | 71.54 | 120 |
| Depreciation | 12.93 | 12.54 | 3 | 50.17 | 47.03 | 7 |
| PBT before Exceptional items | 36.16 | 5.95 | 508 | 107.33 | 24.51 | 338 |
| Exceptional items | 8.00 | 0.23 | 999 | 105.64 | 106.56 | -1 |
| PBT after Exceptional items | 44.16 | 6.18 | 615 | 212.97 | 131.07 | 62 |
| Total Tax | 10.95 | 4.31 | 154 | 44.76 | 53.37 | -16 |
| PAT from ordinary activities | 33.21 | 1.87 | 999 | 168.21 | 77.70 | 116 |
| EO (net of tax) | 0.00 | 0.00 | | 0.00 | 21.22 | -100 |
| Prior period items | 0.00 | 0.00 | | 0.00 | -0.85 | -100 |
| Net Profit before share of profit in associates companies & MI | 33.21 | 1.87 | 999 | 168.21 | 98.07 | 72 |
| Share of profit/loss in assocaite companies | 26.97 | 15.48 | 74 | 81.03 | 36.22 | 124 |
| Minority Interest | -11.44 | -0.99 | 999 | -45.99 | -22.82 | 102 |
| Net profit | 48.74 | 16.36 | 198 | 203.25 | 111.47 | 82 |
| EPS * | 5.4 | 2.1 | | 3.8 | 0.9 | |
*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
| 1006(03) | 0906(03) | Var. (%) | 1003(12) | 0903(12) | Var. (%) |
| Sales | 238.60 | 202.78 | 18 | 874.75 | 880.97 | -1 |
| OPM (%) | 9.6 | 10.6 | | 5.9 | 1.5 | |
| OP | 22.88 | 21.40 | 7 | 51.68 | 13.50 | 283 |
| Other Income | 3.39 | 2.85 | 19 | 12.57 | 17.39 | -28 |
| PBIDT | 26.27 | 24.25 | 8 | 64.25 | 30.89 | 108 |
| Interest (Net) | 14.18 | 16.90 | -16 | 60.25 | 61.06 | -1 |
| PBDT | 12.09 | 7.35 | 64 | 4.00 | -30.17 | LP |
| Depreciation | 6.97 | 6.86 | 2 | 28.39 | 26.46 | 7 |
| PBT before Exceptional Items | 5.12 | 0.49 | 945 | -24.39 | -56.63 | -57 |
| Exceptional Items | 7.98 | 0.23 | 999 | 104.38 | 73.13 | 43 |
| PBT after EO | 13.10 | 0.72 | 999 | 79.99 | 16.50 | 385 |
| Total Tax | -0.30 | 0.14 | | -0.93 | -2.18 | -57 |
| PAT from ordianry activities | 13.40 | 0.58 | 999 | 80.92 | 18.68 | 333 |
| EO (net of tax) | 0.00 | 0.00 | | 0.00 | 0.26 | -100 |
| Prior period items | 0.00 | 0.00 | | 0.00 | -0.86 | -100 |
| Net Profit | 13.40 | 0.58 | 999 | 80.92 | 18.08 | 348 |
| EPS * | 0.7 | 0.0 | | | | |
*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 Revenue | 1006(03) | Var. % | % to Total | 1003(12) | Var. % | % to Total |
| Chemicals | 217.90 | 22 | 21 | 781.30 | 0 | 22 |
| Animal Feeds | 297.32 | 9 | 29 | 1141.79 | 16 | 27 |
| Veg. Oils | 214.60 | 119 | 21 | 576.43 | 7 | 15 |
| Estate & property development | 80.40 | 206 | 8 | 480.12 | 50 | 9 |
| Household Insecticides | 0.00 | -100 | 0 | 19.59 | -90 | 5 |
| Beverages & foods | 41.07 | -3 | 4 | 160.64 | -9 | 5 |
| Finance & Investments | 21.84 | 38 | 2 | 126.85 | 20 | 3 |
| Others | 150.74 | 27 | 15 | 494.50 | -4 | 14 |
| Total | 1023.87 | 30 | 100 | 3781.22 | 5 | 100 |
| Less: Inter Segment Rev | 12.85 | | | 0.00 | | |
| Net Sales / Income from Operations | 1011.02 | 30 | | 3781.22 | 5 | |
| Segment Results (PBIT) | | | | | | |
| Chemicals | 19.60 | 39 | 21 | 52.38 | LP | 10 |
| Animal Feeds | 11.14 | 25 | 12 | 38.80 | 29 | 8 |
| Veg. Oils | -0.39 | PL | 0 | 0.68 | LP | 0 |
| Estate & property development | 36.64 | 241 | 40 | 245.92 | 42 | 49 |
| Household Insecticides | 0.00 | -100 | 0 | 1.65 | -95 | 0 |
| Beverages & foods | -2.47 | -10 | -3 | -15.62 | 421 | -3 |
| Finance & Investments | 10.35 | -11 | 11 | 114.32 | 9 | 23 |
| Others | 17.26 | 184 | 19 | 62.34 | 3 | 12 |
| TOTAL | 92.13 | 73 | 100 | 500.47 | 32 | 100 |
| Less: Interest | 19.67 | -19 | | 149.62 | 0 | |
| Add: Other unallocable expenditure net of unallocable income | -28.30 | 25 | | -137.88 | 40 | |
| Profit before tax expenses | 44.16 | 615 | | 212.97 | 62 | |
| Capital Employed | | | | | | |
| Chemicals | 219.66 | -24 | 6 | 266.00 | -1 | 8 |
| Animal Feeds | -0.11 | -100 | 0 | -22.39 | -130 | -1 |
| Veg. Oils | 26.88 | 23 | 1 | 23.88 | 5 | 1 |
| Estate & property development | 1574.19 | 51 | 44 | 1546.87 | 64 | 45 |
| Household Insecticides | 0.00 | -100 | 0 | 0.00 | | 0 |
| Beverages & foods | 97.91 | 41 | 3 | 63.24 | -10 | 2 |
| Finance & Investments | 1369.84 | 0 | 39 | 1335.53 | -4 | 39 |
| Others | 264.54 | 32 | 7 | 255.45 | 23 | 7 |
| Total | 3552.91 | 15 | 100 | 3468.58 | 15 | 100 |
| Unallocated Corporate Capital Employed | -1736.31 | 4 | | -1702.99 | 6 | |
| Total Capital Employed | 1816.60 | 29 | | 1765.59 | 25 | |
Figures in Rs Crore
Source: Capitaline Corporate Database |
Godrej Industries: Standalone Segment Revenue
| Segment Revenue | 1006(03) | Var. % | % to Total | 1003(12) | Var. % | % to Total |
| Chemicals | 217.91 | 22 | 87 | 781.24 | 0 | 80 |
| Veg. Oils | 0.00 | | 0 | 0.00 | | 0 |
| Estate | 6.93 | -7 | 3 | 27.75 | -12 | 3 |
| Finance & Investments | 21.84 | 38 | 9 | 170.82 | 16 | 15 |
| Others | 3.29 | -6 | 1 | 11.89 | -18 | 1 |
| Total | 249.97 | 21 | 100 | 991.70 | 2 | 100 |
| Less: Inter Segment Rev | 0.00 | | | 0.00 | | |
| Net Sales / Income from Operations | 249.97 | 21 | | 991.70 | 2 | |
| Segment Results (PBIT) | | | | | | |
| Chemicals | 19.54 | 38 | 43 | 52.38 | LP | 23 |
| Veg. Oils | 0.00 | | 0 | 0.00 | | 0 |
| Estate | 4.42 | -14 | 10 | 18.19 | -16 | 8 |
| Finance & Investments | 21.84 | 38 | 48 | 158.28 | 7 | 71 |
| Others | -0.69 | 82 | -2 | -5.39 | 12 | -2 |
| TOTAL | 45.11 | 30 | 100 | 223.46 | 53 | 100 |
| Less: Interest | 14.18 | -16 | | 60.25 | -1 | |
| Add: Other unallocable expenditure net of unallocable income | -17.83 | 4 | | -83.22 | 22 | |
| Profit before tax expenses | 13.10 | 1719 | | 79.99 | 385 | |
| Capital Employed | | | | | | |
| Chemicals | 219.66 | -24 | 13 | 266.00 | 6 | 16 |
| Veg. Oils | 0.00 | | 0 | 0.00 | | 0 |
| Estate | 64.85 | 31 | 4 | 61.12 | 44 | 4 |
| Finance & Investments | 1341.29 | -1 | 81 | 1276.63 | -5 | 78 |
| Others | 23.66 | -8 | 1 | 22.95 | -10 | 1 |
| Total | 1649.46 | -4 | 100 | 1626.70 | -2 | 100 |
| Unallocated Corporate Capital Employed | -613.60 | -13 | | -604.00 | -5 | |
| Total Capital Employed | 1035.86 | 3 | | 1022.70 | 0 | |
Figures in Rs Crore
Source: Capitaline Corporate Database |