Godrej Industries Ltd's Q1FY19 consolidated adjusted net profit declines 2.42% yoy to Rs78.75cr

The company’s consolidated revenue stood at Rs3,031.26cr, up 13.57% yoy and 51.24% qoq.

Aug 13, 2018 09:08 IST India Infoline Research Team

Godrej Industries Ltd Q1FY19

Consolidated Results Q1FY19: (Rs. in cr)

Q1FY19 YoY (%)
Revenue 3,031.26 13.6
EBITDA (adjusted) 199.58 [9.7]
EBITDA Margin (%) 6.6 [170]
Net Profit (adjusted) 78.75 [2.4]
***EBITDA margin change is bps
Godrej Industries Ltd's consolidated revenue from operations (excluding excise duty) for Q1FY19 came in at Rs3,031.26cr, up by 13.6% yoy. The operating EBITDA of the company for the quarter stood at Rs199.58cr (excluding other incomes and share of profits from joint ventures and associates). The operating EBITDA margin declined by ~169bps to 6.6% in Q1FY19. The adjusted net profit after tax (attributable to the owners) stood at Rs78.75cr in Q1FY19, down by 2.4% yoy.

• The revenue under chemicals segment declined by 3.5% yoy to Rs383cr in Q1FY19. However, the segment EBIT increased significantly by 63% yoy to Rs24cr during the quarter, indicating higher operating leverage, improvement in product mix and favorable product realizations. Exports for Q1FY19 stood at Rs115cr during the quarter.
• Natures Basket’s (NBL) revenue increased by 11.5% yoy to Rs80cr in Q1FY19. Online business clocked sale of ~Rs5.7cr in Q1FY19, a growth of 24% yoy; contributing 7.6% to the overall sales. As at June 30, 2018, the company has 29 operating stores across three cities viz. Mumbai, Pune and Bangalore.
• The decline in operating EBITDA and EBITDA margin is attributable towards delay in revenue recognition under ‘Estate and Property Development’ due to implementation of Ind-AS coupled with lower new bookings during the quarter. Over 80% of revenues came in from the BKC project, which is a weak margin legacy project.
• The increase in adjusted net profit of the company to Rs199.20cr in Q4FY18 as against Rs45cr in Q4FY17. This is on account of significantly higher other incomes and lower effective tax rate as against previous year corresponding quarter.
• The consolidated finance cost of the group increased significantly by 26.5% yoy to Rs126.07cr, leading to a drag in the net profits of the company.
• The effective tax rate of the company stood at 35% in Q1FY19 as against 38% in Q1FY18.

Technical View:

Godrej Industries Ltd is currently trading at Rs. 596.50, down by 20.1 points or 3.26% from its previous closing of Rs. 616.60 on the BSE.
The scrip opened at Rs. 615.80 and has touched a high and low of Rs. 620 and Rs. 593.20 respectively. So far 9,38,047 (NSE+BSE) shares were traded on the counter. The stock is currently trading above its 50 DMA.

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