GODREJ CONSUMER 2023-24 Annual Report Analysis

Thu, 18 Jul

GODREJ CONSUMER has announced its results for the year ended March 2024. Let us have a look at the detailed performance review of the company during FY23-24.

GODREJ CONSUMER Income Statement Analysis

• Operating income during the year rose 5.9% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 79.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 3.4% in FY24 as against 17.9% in FY23.
• Depreciation charges increased by 2.0% and finance costs increased by 64.2% YoY, respectively.
• Other income grew by 59.7% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year declined from 12.8% in FY23 to 4.0% in FY24.

GODREJ CONSUMER Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	133,160	140,961	5.9%
Other income	Rs m	1,684	2,690	59.7%
Total Revenues	Rs m	134,844	143,651	6.5%
Gross profit	Rs m	23,891	4,798	-79.9%
Depreciation	Rs m	2,363	2,410	2.0%
Interest	Rs m	1,885	3,096	64.2%
Profit before tax	Rs m	21,327	1,982	-90.7%
Tax	Rs m	4,303	7,588	76.3%
Profit after tax	Rs m	17,025	-5,606	NA
Gross profit margin	%	17.9	3.4
Effective tax rate	%	20.2	382.8
Net profit margin	%	12.8	-4.0

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GODREJ CONSUMER Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 56 billion as compared to Rs 33 billion in FY23, thereby witnessing an increase of 69.9%.
• Current assets fell 4% and stood at Rs 56 billion, while fixed assets rose 14% and stood at Rs 126 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 181 billion as against Rs 168 billion during FY23, thereby witnessing a growth of 8%.

GODREJ CONSUMER Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	137,707	125,617	-8.8
Current Liabilities	Rs m	32,913	55,903	69.9
Long-term Debt	Rs m	1,891	0	-100.0
Total Liabilities	Rs m	167,960	181,117	7.8
Current assets	Rs m	58,060	55,535	-4.3
Fixed Assets	Rs m	109,901	125,505	14.2
Total Assets	Rs m	167,960	181,117	7.8

GODREJ CONSUMER Cash Flow Statement Analysis

• GODREJ CONSUMER's cash flow from operating activities (CFO) during FY24 stood at Rs 21 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -34 billion, an improvement of 91.3% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 14 billion, an improvement of 277% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 461 million from the Rs -4 billion net cash flows seen during FY23.

GODREJ CONSUMER Cash Flow Statement 2023-24

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-23	Mar-24
Cash Flow from Operating Activities	Rs m	21,507	20,700	-3.8%
Cash Flow from Investing Activities	Rs m	-17,583	-33,630	-
Cash Flow from Financing Activities	Rs m	-7,943	14,063	-
Net Cash Flow	Rs m	-3,981	461	-

Current Valuations for GODREJ CONSUMER

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -5.5, an decline from the EPS of Rs 16.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,452.8, stands at -265.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 11.8 times, while the price to sales ratio stands at 10.5 times.
• The company's price to cash flow (P/CF) ratio stood at -351.5 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Sales per share (Unadj.)	Rs	130.2	137.8
TTM Earnings per share	Rs	16.6	-5.5
Diluted earnings per share	Rs	16.6	-5.5
Price to Cash Flow	x	51.1	-351.5
TTM P/E ratio	x	58.2	-265.1
Price / Book Value ratio	x	6.2	8.9
Market Cap	Rs m	859,703	1,123,440
Dividends per share (Unadj.)	Rs	0.0	5.0

Ratio Analysis for GODREJ CONSUMER

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.0x during FY24, from 1.8x during FY23. The current ratio measures the company's ability to pay short-term and long-term obligations.

Interest Coverage Ratio: The company's interest coverage ratio deteriorated and stood at 1.6x during FY24, from 12.3x during FY23. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company declined and down at -4.5% during FY24, from 12.4% during FY24. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

Return on Capital Employed (ROCE): The ROCE for the company declined and down at 4.0% during FY24, from 16.6% during FY23. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

Return on Assets (ROA): The ROA of the company declined and down at -1.4% during FY24, from 11.3% during FY23. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Current ratio	x	1.8	1.0
Debtors’ Days	Days	3	4
Interest coverage	x	12.3	1.6
Debt to equity ratio	x	0.0	0.0
Return on assets	%	11.3	-1.4
Return on equity	%	12.4	-4.5
Return on capital employed	%	16.6	4.0

To see how GODREJ CONSUMER has performed over the last 5 years, please visit here.

GODREJ CONSUMER Share Price Performance

Over the last one year, GODREJ CONSUMER share price has moved up from Rs 1,040.9 to Rs 1,452.8, registering a gain of Rs 412.0 or around 39.6%.

Meanwhile, the S&P BSE FMCG Index is trading at Rs 21,944.6 (up 0.9%). Over the last one year it has moved up from 19,148.6 to 21,944.6, a gain of 2,796 points (up 14.6%).

Overall, the S&P BSE SENSEX is up 21.2% over the year.

(To know more, check out historical annual results for GODREJ CONSUMER and quarterly results for GODREJ CONSUMER)