GODREJ INDUSTRIES 2023-24 Annual Report Analysis

Mon, 22 Jul

GODREJ INDUSTRIES 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 INDUSTRIES Income Statement Analysis

• Operating income during the year fell 0.8% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 37.5% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 7.2% in FY24 as against 11.4% in FY23.
• Depreciation charges increased by 21.7% and finance costs increased by 43.5% YoY, respectively.
• Other income grew by 46.4% YoY.
• Net profit for the year declined by 58.1% YoY.
• Net profit margins during the year declined from 8.5% in FY23 to 3.6% in FY24.

GODREJ INDUSTRIES Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	167,403	166,006	-0.8%
Other income	Rs m	10,221	14,964	46.4%
Total Revenues	Rs m	177,624	180,970	1.9%
Gross profit	Rs m	19,057	11,913	-37.5%
Depreciation	Rs m	3,045	3,708	21.7%
Interest	Rs m	9,427	13,524	43.5%
Profit before tax	Rs m	16,806	9,644	-42.6%
Tax	Rs m	2,599	3,693	42.1%
Profit after tax	Rs m	14,206	5,952	-58.1%
Gross profit margin	%	11.4	7.2
Effective tax rate	%	15.5	38.3
Net profit margin	%	8.5	3.6

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GODREJ INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 344 billion as compared to Rs 221 billion in FY23, thereby witnessing an increase of 55.3%.
• Long-term debt stood at Rs 116 billion as compared to Rs 71 billion during FY23, a growth of 63.7%.
• Current assets rose 51% and stood at Rs 394 billion, while fixed assets rose 25% and stood at Rs 217 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 611 billion as against Rs 435 billion during FY23, thereby witnessing a growth of 40%.

GODREJ INDUSTRIES Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	79,741	79,891	0.2
Current Liabilities	Rs m	221,350	343,857	55.3
Long-term Debt	Rs m	70,839	115,935	63.7
Total Liabilities	Rs m	435,057	611,103	40.5
Current assets	Rs m	260,999	393,846	50.9
Fixed Assets	Rs m	174,058	217,257	24.8
Total Assets	Rs m	435,057	611,103	40.5

GODREJ INDUSTRIES Cash Flow Statement Analysis

• GODREJ INDUSTRIES's cash flow from operating activities (CFO) during FY24 stood at Rs -43 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -28 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 72 billion, an improvement of 104% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 3 billion from the Rs 10 billion net cash flows seen during FY23.

GODREJ INDUSTRIES 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	-44,094	-42,841	-
Cash Flow from Investing Activities	Rs m	17,753	-27,520	-
Cash Flow from Financing Activities	Rs m	35,346	72,186	104.2%
Net Cash Flow	Rs m	9,766	2,880	-70.5%

Current Valuations for GODREJ INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 17.7, an decline from the EPS of Rs 42.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 891.7, stands at 46.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.8 times, while the price to sales ratio stands at 1.8 times.
• The company's price to cash flow (P/CF) ratio stood at 22.9 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	497.3	493.1
TTM Earnings per share	Rs	42.2	17.7
Diluted earnings per share	Rs	42.2	17.7
Price to Cash Flow	x	7.9	22.9
TTM P/E ratio	x	13.3	46.3
Price / Book Value ratio	x	1.9	2.8
Market Cap	Rs m	152,867	221,080
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for GODREJ INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.1x during FY24, from 1.2x 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 1.7x during FY24, from 2.8x 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 7.4% during FY24, from 17.8% 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 11.8% during FY24, from 17.4% 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 3.2% during FY24, from 5.4% 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	1.2	1.1
Debtors’ Days	Days	3	3
Interest coverage	x	2.8	1.7
Debt to equity ratio	x	0.9	1.5
Return on assets	%	5.4	3.2
Return on equity	%	17.8	7.4
Return on capital employed	%	17.4	11.8

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

GODREJ INDUSTRIES Share Price Performance

Over the last one year, GODREJ INDUSTRIES share price has moved up from Rs 479.5 to Rs 891.7, registering a gain of Rs 412.3 or around 86.0%.

Overall, the S&P BSE SENSEX is up 20.6% over the year.

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