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The consolidated net sales for March 2017 quarter increased by 7% to Rs 1950.84 crore. India business primary sales growth of 10% year-on-year, led by 5% volume growth. International business sales grew by 22% year-on-year, on a constant currency basis. OPM has inclined by 381 bps to 5.6%. The profit before tax and exceptional items stood at Rs 29.93 crore. The net profit stood at Rs 45.53 crore against loss of Rs 59.73 crore in last year due to increase in OPM and absence of EO expense.
Commenting on the performance, Mr. A.B. Godrej Chairman, Godrej Industries Limited, said:
I am pleased to share that in FY17 Godrej Industries Limited recorded a healthy growth of 11% in consolidated Total Income and a growth of 59% in consolidated Net profit.
Godrej Agrovet's revenues for the fiscal year 2017 continued to grow by 31% through a healthy mix of organic and acquisitive growth resulting in a PBT growth of 12%.
FY 17 has been a strong year for Godrej Properties for business development as it added 7 new projects with a saleable area of 18 million sq. ft. It entered Noida market and sold more than 1 million sq. ft. despite weak market conditions.
Godrej Consumer Products' continued to deliver ahead-of-the-market performance over last few years. Even during fiscal year 2017, it has consistently outperformed across quarters, with reported sales growth of 10% for the year and EBITDA growth of 17%.
As we look ahead, I feel confident of strong growth in the medium to long term. Post the remonetisation of currency, the demand has improved in India. We are now getting back to the recovery seen during the pre-demonetisation levels. We look forward to the GST implementation which I believe will be transformative for Indian economy and will significantly boost consumption and GDP growth.
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 March 2017
The net sales increased by 7% to Rs 1950.84 crore. India business primary sales growth of 10% year-on-year, led by 5% volume growth. International business sales grew by 22% year-on-year, on a constant currency basis.
OPM has inclined by 381 bps to 5.6% mainly due to fall cost of property development and other expenditure to adjusted net sales. The operating profit inclined by 235% to Rs 109.12 crore.
Other income has decreased 42% to Rs 44.38 crore. The interest cost declined by 6% to Rs 84.46 crore. Depreciation has increased by 7% to Rs 39.11 crore. The profit before tax and exceptional items stood at Rs 29.93 crore.
EO income for the quarter was Rs 0.54 crore. The tax outgo stood at Rs 21.04 crore. The effective tax rate stood at 69%. The net profit after considering share from associates companies and minority interest stood at Rs 45.53 crore against loss of Rs 59.73 crore in last year due to increase in OPM and absence of EO expense.
For year ended March 2017
Net sales grew by 12% to Rs 8365.13 crore. OPM has increased by 240 bps 7.6%. The operating profit has increased by 64% to Rs 638.63 crore.
Other income declined by 15% to Rs 175.84 crore. Interest cost increased by 16% to Rs 399.52 crore. Depreciation was up by 26% at Rs 148.14 crore. The profit before tax before exceptional items stood at Rs 266.81 crore, inclined by 94%.
Exceptional income for the year stood at Rs 22.76 crore. Total tax outgo increased by 54% to Rs 167.41 crore. The effective tax rate decreased from 58.2% to 57.8%. The net profit after considering share of profit from associates companies and minority interest has increased by 60% to Rs 256.45 crore.
Consolidated Segmented results
Chemicals
The revenues inclined by 38% to Rs 426.26 crore for Q4 FY17. PBIT margin decreased by 280 bps to 4.6%. PBIT stood at Rs 19.59 crore, down by 15%.
The revenues inclined by 17% to Rs 1437.10 crore for FY17. PBIT margin decreased by 210 bps to 5.4%. PBIT stood at Rs 77.12 crore, down by 16%.
Animal Feeds
Revenue de-grew by 10% to Rs 583.15 crore for Q4 FY17. PBIT margin was increased by 23 bps to 7.9%. There was decrease in PBIT by 7% to Rs 45.98 crore.
Animal Feeds business had a steady performance in FY17 despite headwinds in few categories. Revenue grew by 3% to Rs 2620.82 crore for FY17. PBIT margin was decreased by 86 bps to 6.4%. There was decrease in PBIT by 9% to Rs 167.69 crore
Vegetable oils
Sales inclined 13% during Q4 FY17 to Rs 109.07 crore. PBIT margin increased by 110 bps to 5.4%. PBIT increased by 43% to Rs 5.87 crore.
Sales inclined 24% during FY17 to Rs 728.29 crore. PBIT margin increased by 440bps to 16.6%. PBIT increased by 69% to Rs 120.95 crore.
Estate and property developments
Sales from this business increased by 23% to Rs 479.62 crore in Q4 FY17. PBIT margin stood at 18.5%. The PBIT stood at Rs 88.74 crore.
Q4 FY17 witnessed total booking value of Rs 340 crore and total booking volume of 5,89,169 sq. ft.
Sales from this business decreased by 23% to Rs 1747.56 crore in FY17. PBIT margin has inclined by 970 bps to 19.5%. The PBIT increased by 54% to 340.77 crore.
Finance and investments
This business revenue stood at Rs 123.96 crore while PBIT stood at Rs 4.85 crore for Q4 FY17.
This business revenue has decreased by 5% to Rs 200.06 crore while PBIT has declined by 63% to Rs 32.86 crore for FY17.
Dairy
Sales grew by 6% to Rs 257.64 crore in Q4 FY17 aided by strong performance of value added products which grew by 24%. PBIT margin declined by 380bps to 0.7%. PBIT decline by 84% to Rs 1.73 crore.
Sales grew by 270% to Rs 1009.92 in FY17. PBIT margin inclined by 310bps to 3.6%. PBIT inclined more than 999% to Rs 36.67 crore.
Agri
Sales declined 6% during Q4FY17 to Rs 112.87 crore. PBIT margin inclined 250 bps to 18.2%. PBIT grew by 8% to Rs 20.56 crore.
Sales inclined 54% during FY17 to Rs 764.73 crore. PBIT margin inclined 290 bps to 22.3%. PBIT grew by 77% to Rs 170.79 crore.
Crop Protection business sales in FY17 grew by 18% as compared to FY16. This was mainly driven by Plant Growth Promoters, Pesticides and Hitweed.
Other Business
Other Business revenue decreased by 5% to Rs 81.84 crore while loss at PBIT stood at Rs 31.90 crore for Q4 FY17.
Other Business revenue increased by 10% to Rs 374.01 crore while loss at PBIT stood at Rs 87.45 crore for FY17.
Other Developments
The Board of Directors of the Company has recommended a dividend of Rs 1.75/- per share for the financial year ended March 31, 2017.
During the year, Godrej & Boyce Manufacturing Company Limited has transferred it's entire share holding in the Company to Vora Soaps Limited, which has now become the Holding Company of Godrej Industries Limited.
Valuation
The scrip is trading around Rs 570.9 at BSE.
The total promoters holding in the company stand at 74.77%.
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