|
The consolidated net sales for June 2016 quarter increased by 36% to Rs 2053.89 crore. OPM has declined marginally to 8.1%. The operating profit inclined by 35% to Rs 167.33 crore. The net profit has increased by just 2% to Rs 63.76 crore due to increase in effective tax rate.
Commenting on the performance, Mr. A.B. Godrej Chairman, Godrej Industries Limited, said:
I am pleased to share that in Q1FY17 Godrej Industries Limited recorded a healthy growth of 33% in consolidated Total Income.
After an excellent FY2016, Godrej Properties have made a steady beginning in Q1FY17. A couple of very important milestones were achieved in Q1FY17. Godrej BKC received its occupancy certificate and construction of both phases of flagship project ‘The Trees' commenced.
Godrej Agrovet had a healthy mix of organic and acquisitive growth with Total Income growing by 50% and profits by 29% over Q1FY16.
Godrej Consumer Products' consolidated sales increased by 9% and EBITDA by 20%, in constant currency terms. This performance was delivered despite the sluggish business environment across many geographies where it operates. GCPL delivered healthy profits driven by judicious cost control and commodity tailwinds.
We are hopeful that the good monsoons in India should lead to a pick up in rural demand later this year. We should also see a boost to consumption in India, following the implementation of Seventh Pay Commission and the passing of the Goods & Services Tax.
Going forward, through our CREATE strategy, we will continue to strengthen our position in all our core businesses while fostering an inspiring place to work and creating shared value for all our stakeholders.
CORPORATE HIGHLIGHTS
Company's performance
Consolidated results
For quarter ended June 2016
The net sales increased by 36% to Rs 2053.89 crore. OPM has declined marginally to 8.1%. The operating profit inclined by 35% to Rs 167.33 crore.
Other income has decreased 27% to Rs 47.32 crore. The interest cost inclined by 30% to Rs 99.81 crore. Depreciation has increased by 44% to Rs 35.19 crore. The profit before tax and exceptional items stood at Rs 79.65 crore, declined by 9%.
The tax outgo stood at Rs 38.59 crore, increased by 261%. The effective tax rate increased from 12.3% to 48.4%. The net profit after considering share from associates companies and minority interest has increased by just 2% to Rs 63.76 crore due to increase in effective tax rate.
For financial year ended March 2016
Net sales grew by 17% to Rs 10753.15 crore. OPM has increased by 60 bps 5.9%. The operating profit has increased by 30% to Rs 630.79 crore.
Other income inclined by 41% to Rs 177.10 crore. Interest cost increased by 42% to Rs 273.19 crore. Depreciation was up by 40% at Rs 130.21 crore. The profit before tax before exceptional items stood at Rs 404.49 crore, inclined by 24%.
Exceptional income for FY16 stood at Rs 236.06 crore, which is a profit on sale of long term investment and a write back of provision for diminution in value of investment. Total tax outgo increased by 37% to Rs 186.90 crore. The effective tax rate increased from 26.3% to 29.2%. The net profit after considering share of profit from associates companies and minority interest has increased by 20% to Rs 484.43 crore.
Consolidated Segmented results
Chemicals
The revenues declined by 9% to Rs 279.97 crore for Q1 FY17. Exports stood at Rs 70 crore. PBIT margin decreased by 460 bps to 5.8%. PBIT stood at Rs 16.19 crore, down by 49%.
The performance of the chemicals business was impacted due to the planned shut-down for maintenance at Valia (Gujarat) factory
Animal Feeds
Revenue grew by 10% to Rs 698.53 crore for Q1 FY17, in challenging environment. PBIT margin was decreased by 89 bps to 6.6%. There was decrease in PBIT by 3% to Rs 46.18 crore.
Vegetable oils
Sales inclined 24% during Q1 FY17 to Rs 179.89 crore driven by higher CPO/PKO prices. PBIT margin increased by 1400 bps to 21.5%. PBIT increased by 252% to Rs 38.74 crore.
Estate and property developments
Sales of this business increased by 44% to Rs 336.51 crore in Q1 FY17. PBIT margin has declined by 1570 bps to 18.9%. The PBIT decreased by 21% to 63.70 crore.
GPL delivered 1.94 million sq.ft. in Q1FY17 which includes 1.28 million sq.ft of commercial and 0.66 million sq.ft of residential space across three cities.
Godrej BKC received the occupation certificate in Q1 FY17
Started Construction at The Trees, Residential Phases 1&2 in Q1FY17
Two new projects with 13 million sq.ft. of saleable area added in Q1FY17
Commercial sales stood at ~43,000 sq.ft with a booking value of Rs 75 crore
Finance and investments
This business revenue has decreased by 24% to Rs 30.31 crore while PBIT has declined by 55% to Rs 8.23 crore for Q1 FY17.
Dairy
Sales grew by 11% to Rs 251.33 crore in Q1 FY17. PBIT margin stood at 6.6%. PBIT stood at Rs 16.49 crore.
Agri
Sales inclined 67% during Q1 FY17 to Rs 244.84 crore. PBIT margin declined 540 bps to 23.1%. PBIT grew by 35% to Rs 56.50 crore.
Other Business
Other Business revenue increased by 12% to Rs 104.32 crore while loss at PBIT stood at Rs 14.96 crore for Q1 FY17.
Other Developments
During the quarter, the Company has issued 150979 equity shares of Re.1 each to eligible employees of the Company and its subsidiaries against the exercise of options given under Employees Stock Grant Scheme for an aggregate value of Rs 4.85 crore.
Valuation
The scrip is trading around Rs 397.50 at BSE.
The total promoters holding in the company stand at 74.77%.
|