GODREJ PROPERTIES 2020-21 Annual Report Analysis

Wed, 31 Mar

GODREJ PROPERTIES has announced its results for the year ended March 2021. Let us have a look at the detailed performance review of the company during FY20-21.

GODREJ PROPERTIES Income Statement Analysis

• Operating income during the year fell 68.7% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 196.5% YoY during the fiscal. Operating profit margins witnessed a growth and stood at 43.6% in FY21 as against 14.1% in FY20.
• Depreciation charges decreased by 4.8% and finance costs decreased by 16.0% YoY, respectively.
• Other income grew by 20.1% YoY.
• Net profit for the year declined by 120.4% YoY.
• Net profit margins during the year declined from 14.7% in FY20 to 9.6% in FY21.

GODREJ PROPERTIES Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	24,414	7,649	-68.7%
Other income	Rs m	4,732	5,682	20.1%
Total Revenues	Rs m	29,146	13,331	-54.3%
Gross profit	Rs m	3,454	-3,334	-196.5%
Depreciation	Rs m	205	195	-4.8%
Interest	Rs m	2,201	1,849	-16.0%
Profit before tax	Rs m	5,780	304	-94.7%
Tax	Rs m	2,190	1,038	-52.6%
Profit after tax	Rs m	3,591	-734	-120.4%
Gross profit margin	%	14.1	-43.6
Effective tax rate	%	37.9	341.2
Net profit margin	%	14.7	-9.6

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GODREJ PROPERTIES Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 68 billion as compared to Rs 53 billion in FY20, thereby witnessing an increase of 28.4%.
• Long-term debt stood at Rs 10 billion as compared to Rs 0 million during FY20, a fall of 0.0%.
• Current assets rose 71% and stood at Rs 131 billion, while fixed assets rose 37% and stood at Rs 29 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 160 billion as against Rs 97 billion during FY20, thereby witnessing a growth of 64%.

GODREJ PROPERTIES Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	48,018	83,145	73.2
Current Liabilities	Rs m	52,645	67,618	28.4
Long-term Debt	Rs m	0	10,000	0.0
Total Liabilities	Rs m	97,416	159,560	63.8
Current assets	Rs m	76,446	130,735	71.0
Fixed Assets	Rs m	20,970	28,825	37.5
Total Assets	Rs m	97,416	159,560	63.8

GODREJ PROPERTIES Cash Flow Statement Analysis

• GODREJ PROPERTIES's cash flow from operating activities (CFO) during FY21 stood at Rs -7 billion, an improvement of 189.7% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -33 billion, an improvement of 93.0% on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs 43 billion, an improvement of 116% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 3 billion from the Rs 216 million net cash flows seen during FY20.

GODREJ PROPERTIES Cash Flow Statement 2020-21

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-20	Mar-21
Cash Flow from Operating Activities	Rs m	-2,317	-6,712	-
Cash Flow from Investing Activities	Rs m	-17,212	-33,219	-
Cash Flow from Financing Activities	Rs m	19,742	42,590	115.7%
Net Cash Flow	Rs m	216	2,707	1,156.1%

Current Valuations for GODREJ PROPERTIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -2.6, an decline from the EPS of Rs 14.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,408.4, stands at -534.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.7 times, while the price to sales ratio stands at 51.2 times.
• The company's price to cash flow (P/CF) ratio stood at -554.8 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Sales per share (Unadj.)	Rs	96.9	27.5
TTM Earnings per share	Rs	14.2	-2.6
Diluted earnings per share	Rs	12.9	-2.6
Price to Cash Flow	x	44.1	-554.8
TTM P/E ratio	x	47.0	-534.0
Price / Book Value ratio	x	4.4	3.6
Market Cap	Rs m	213,458	298,587
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for GODREJ PROPERTIES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.9x during FY21, from 1.5x during FY20. 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 1.2x during FY21, from 3.6x during FY20. 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 -0.9% during FY21, from 7.5% during FY21. 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 2.3% during FY21, from 16.6% during FY20. 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 0.7% during FY21, from 5.9% during FY20. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Current ratio	x	1.5	1.9
Debtors’ Days	Days	6	11
Interest coverage	x	3.6	1.2
Debt to equity ratio	x	0.0	0.1
Return on assets	%	5.9	0.7
Return on equity	%	7.5	-0.9
Return on capital employed	%	16.6	2.3

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

GODREJ PROPERTIES Share Price Performance

Over the last one year, GODREJ PROPERTIES share price has moved up from Rs 602.8 to Rs 1,408.4, registering a gain of Rs 805.6 or around 133.7%.

Meanwhile, the S&P BSE REALTY Index is trading at Rs 2,670.3 (up 1.9%). Over the last one year it has moved up from 1,353.7 to 2,670.3, a gain of 1,317 points (up 97.3%).

Overall, the S&P BSE SENSEX is up 74.1% over the year.

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

Read: Latest Annual Report Analysis of GODREJ PROPERTIES