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Godrej Industries

capital market | Mumbai | February 21, 2014 19:17 IST

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.









 

 
 
 
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