Analyst Meet / AGM     16-Feb-17
Conference Call
Godrej Industries
Poultry feed industry is seeing change in its industry structure
Godrej Industries (GIL) held a conference call to discuss the quarter ended December 2016 result.

Highlights

Godrej Consumer Products

The consolidated net sales for Q3 FY17 have increased by 9% at Rs 2402.16 crore. India business sales flat at Rs 1263 crore. Volume de-grown by 3%. India business primary sales were flat while secondary sales increased by 2% on year-on-year basis despite demonetization challenges. International business sales grew by 19%. The business has grown by 28% on an organic constant currency basis. OPM increased by 85 bps to 21.5%. The profit before tax and EO was up by 5% to Rs 447.43 crore. the net profit has decreased by 4% to Rs 351.78 crore.

Chemical Division

The revenues inclined by 34% to Rs 369 crore for Q3FY17. PBIT stood at Rs 23 crore, up by 83%.

Godrej Properties Limited (GPL)

Sold more than 600,000 sq.ft. with a booking value in excess of Rs 300 crore in a single day at Godrej Golf Links in Greater Noida despite weak market conditions.

Q3 FY17 witnessed total booking value of Rs 693 crore and total booking volume of 1,190,465 sq. ft.

Added one new project (Pune) with saleable area of 0.56 million sq.ft.

Construction Highlights: Delivered 418 apartments measuring 0.48 million sq.ft. across 3 cities.

3 phases of The Tree are there out of which 2 phases has been launched. 0.5 mn area needs to be sale of residential in The Tree.

Godrej BKC received Platinum certification under India Green Building Council (IGBC) Leadership in Energy and Environmental Design (LEED) India Core and Shell (CS) rating which is globally recognized as highest rating for sustainable buildings

Godrej Agrovet Limited (GAVL)

Sales was inclined 18% to Rs 1193 crore for Q3 FY17 due to strong performance in Palm Oil Business and Agri Input business. PBT excluding gain on fair value of investments) is up 369% to Rs 61 crore

Both acquisitions of Cream Line and Astec Life sciences are delivering as per expectations as the company drive integration and realize synergy benefits

Animal feed business showing steady improvement in performance

GAVL successfully exited its investment in Polchem with a PBT gain of 23 crore in Q3FY17

Animal Feed

Revenue has increased by 3% to Rs 653 crore. Steady performance by the Animal Feed business despite a challenging environment.

Bangladesh feed business revenues grew by 14%

For 9M, double digit volume growth seen in cattle feed and aqua feed.

Poultry feed – industry is changing its structure. It is getting more integrated. Business model is changing from B2C to B2B. The company is also changing the way to do business to B2B from earlier B2C.

The company will perform good in cattle and aqua feed.

The company working on multiple sales initiatives to improve future business performance across all categories

ACI Godrej (Bangladesh)

Sales increased by 14% to Rs 127 crore. Robust volume growth of 14% in Q3'FY17. Significant volume growth in Cattle Feed at 49% and Fish Feed at 21%

Oil Palm Plantation

Sales decreased by 4% to Rs 112 crore

Remunerative prices of FFB for the farmers helped in bringing sizeable area under Oil Palm this Year

Agri Inputs Business

Sales increased by 26% to Rs 87 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 9% to Rs 105 crore impacted by demonetization.

Expansion to newer cities for Real Good Chicken underway

Work started on proposed capex in Punjab, likely to be commissioned by Q2 FY18.

Astec Lifesciences

Sales inclined by 95% to Rs 62 crore. The sales growth was also backed by improved profitability.

The company's present stake stands at 54.5%.

Creamline Dairy Products

Sales grew by 7% to Rs 244 crore in Q3 FY17 aided by strong performance of value added products which grew by 37%.

28% sale is from value added products.

For dairy industry, value added products is growing at 20% and liquid milk at 6-7%. Contribution margin in milk is 7-8% and value added product is 20-22%.

NATURE'S BASKET

The revenue grew by 23% to Rs 245 crore in 9M FY17.

Online sales grew by 217% to Rs 16.2 crore in 9M FY17.

Total gifting sales grew by 18%.

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