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Godrej Industries (GIL) held a conference call to discuss the quarter ended September 2016 result.
Highlights
Godrej Consumer Products
The consolidated net sales for the quarter ended September 2016 have increased by 11% at Rs 2360.23 crore. India business sales increased by 7% to Rs 1305 crore led by 9% volume growth. International business sales grew by 16% to Rs 1152 crore. The net profit has increased by 44% to Rs 318.12 crore due to fall in EO expense and tax rate.
Chemical Division
The revenues inclined by 8% to Rs 337 crore for Q2FY17. PBIT stood at Rs 18 crore, down by 25%. PBIT for the quarter was impacted due to higher raw material prices relative to corresponding quarter of the previous year.
Godrej Properties Limited (GPL)
Added 1 new project with 1 million sq.ft. of saleable area at Sarjapur Road, Bengaluru.
Successfully launched Godrej Emerald in Mumbai; sold 269 apartments with total sales of 301,796 sq.ft. and a booking value of Rs 259 crore
Commercial sales stood at ~ 51,000 sq.ft with a booking value of Rs 122 crore
Construction Highlights: Delivered 288 apartments measuring 0.37 million sq.ft. at Godrej Garden City, Ahmedabad.
Godrej Agrovet Limited (GAVL)
Sales was inclined 53% to Rs 1425 crore for Q2 FY17 through a healthy mix of organic and acquisitive growth. PBT grew by 73% to Rs 116 crore.
Strong performance in Agri Inputs and Palm Oil Business
Both acquisitions delivering as per expectations as the integration continues
Animal feed business showing steady growth despite headwinds.
Strong performance aided by Palm Oil Business, Agri Inputs, Creamline Dairy and Astec LifeSciences
Animal Feed
Revenue has increased by 10% to Rs 686 crore. Steady performance by the Animal Feed business despite a challenging environment in Shrimp and
Broiler feed. The company working on multiple sales initiatives to improve future business performance across all categories
ACI Godrej (Bangladesh)
Sales increased by 13% to Rs 177 crore. Robust volume growth of 13% in Q2'FY17. Significant volume growth in Cattle Feed at 48% and Fish Feed at 20%
Oil Palm Plantation
Sales increased by 34% to Rs 220 crore driven by higher CPO /PKO prices
Price of FFB in Q2 continued to be remunerative for the farmers and shall help in bringing sizeable area under Oil Palm this year
Agri Inputs Business
Sales increased by 28% to Rs 167 crore driven by Hitweed, Pesticides and Plant Growth Promoters
The business will focus on building synergies this year with Astec LifeSciences
Godrej Tyson
Sales de-grew slightly to Rs 107 crore.
Expansion to newer cities for Real Good Chicken underway
Work started on proposed capex in Punjab, likely to be commissioned by April'17. Capex is around Rs 40-42 crore.
Astec Lifesciences
Sales inclined by 31% to Rs 90 crore buoyed by both domestic as well as export sales. The sales growth was also backed by improved profitability
Creamline Dairy Products
Sales grew by 8% to Rs 260 crore in Q2 FY17 aided by strong performance of value added products which grew by 33%.
Value added products constitute nearly 25% of the revenue. The mgmt expects it to grow to 26-27% of the revenue by end of FY17.
Profitability of the business impacted due to ice cream business.
NATURE'S BASKET
The revenue grew by 28% to Rs 155 crore in H1 FY17.
Online sales grew by 285% to Rs 11 crore.
Hubs for online sales, intergraded with stores.
Other Highlights
Agri feed business – India business by 10% and Bangladesh grew by 16% for H1 FY17. Bangladesh margin is 5-6% of sales and India business margin is 2% of sales. Agri feed has seen some improvement in last few motnhs as such expects margin improvement in future
Palm Oil business – oil prices higher by 20% vs last year. Profitability is almost double.
Vegetable oil business segment is divided into palm oil, edible oil which have revenue of Rs 30 crore and margin of 6% and trading business.
5-7% chemical business margin going fwd expected.
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