Godrej Industries Ltd

About

Godrej Industries is one of the holding companies of Godrej Group. It is one of the leading manufacturers of oleochemicals on a standalone basis.

Godrej Industries is promoter of Godrej Agrovet Ltd and Godrej Properties Ltd. It also has stake in Godrej Consumer Products Ltd [1].

Key Points

Oleochemicals business [1]
Godrej Industries Ltd (GIL) is one of India's leading manufacturers of oleo-chemicals (derivatives of vegetable and animal oils & fats). Fatty acids accounts for 41% of divisions revenue, followed by fatty alcohols (30%), surfactants (22%) and glycerin accounts for the rest 7% of revenues. [2]

It derives ~30% of its turnover from export operations. Its manufacturing facilities are located in Valia, Gujarat and Ambernath, Maharashtra. [3]

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  • Market Cap 19,332 Cr.
  • Current Price 574
  • High / Low 674 / 375
  • Stock P/E
  • Book Value 46.1
  • Dividend Yield 0.00 %
  • ROCE 2.34 %
  • ROE -7.26 %
  • Face Value 1.00

Pros

  • Company is expected to give good quarter

Cons

  • Stock is trading at 12.46 times its book value
  • Company has low interest coverage ratio.
  • The company has delivered a poor sales growth of 7.33% over past five years.
  • Company has a low return on equity of 1.48% for last 3 years.
  • Earnings include an other income of Rs.78.63 Cr.
  • Debtor days have increased from 38.90 to 49.12 days.
  • Promoter holding has decreased over last 3 years: -7.53%

Peer comparison

Sector: Chemicals Industry: Chemicals

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Quarterly Results

Standalone Figures in Rs. Crores / View Consolidated

Dec 2018 Mar 2019 Jun 2019 Sep 2019 Dec 2019 Mar 2020 Jun 2020 Sep 2020 Dec 2020 Mar 2021 Jun 2021 Sep 2021
563 493 478 543 482 466 267 537 504 548 664 888
450 433 410 436 424 408 278 441 476 524 630 738
Operating Profit 112 60 69 107 57 59 -11 96 28 24 34 150
OPM % 20% 12% 14% 20% 12% 13% -4% 18% 6% 4% 5% 17%
Other Income 10 -231 1 2 21 13 9 20 17 19 27 15
Interest 60 62 64 60 52 53 52 58 62 66 79 88
Depreciation 12 14 17 16 18 18 17 18 18 19 19 19
Profit before tax 50 -247 -12 33 8 1 -71 40 -35 -42 -36 59
Tax % 0% 0% 0% 0% 0% -12% 0% 0% 0% 0% 0% 0%
Net Profit 50 -247 -12 33 8 1 -71 40 -35 -41 -36 59
EPS in Rs 1.50 -7.35 -0.36 0.99 0.25 0.03 -2.11 1.18 -1.04 -1.23 -1.08 1.76

Profit & Loss

Standalone Figures in Rs. Crores / View Consolidated

Mar 2010 Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 TTM
811 1,108 1,434 1,460 1,449 1,450 1,303 1,500 1,958 2,144 1,969 1,856 2,604
925 1,011 1,354 1,372 1,352 1,378 1,209 1,432 1,722 1,750 1,676 1,719 2,367
Operating Profit -114 96 79 88 96 73 94 68 237 394 293 137 236
OPM % -14% 9% 6% 6% 7% 5% 7% 5% 12% 18% 15% 7% 9%
Other Income 283 132 219 97 148 236 159 47 301 -202 35 65 79
Interest 60 63 71 65 95 148 200 208 212 240 229 238 294
Depreciation 28 29 27 23 25 29 44 52 69 54 69 72 75
Profit before tax 80 136 201 97 125 132 8 -145 257 -101 31 -108 -54
Tax % -1% 2% -0% 0% 4% -13% -314% 0% 6% 0% -0% 0%
Net Profit 81 133 202 97 120 149 34 -145 242 -101 31 -108 -53
EPS in Rs 2.88 3.57 4.43 1.02 -4.32 7.18 -3.01 0.92 -3.20 -1.59
Dividend Payout % 59% 42% 28% 61% 48% 40% 172% -40% 24% -38% 0% 0%
Compounded Sales Growth
10 Years: 5%
5 Years: 7%
3 Years: -2%
TTM: 49%
Compounded Profit Growth
10 Years: %
5 Years: -5%
3 Years: %
TTM: -151%
Stock Price CAGR
10 Years: 11%
5 Years: 9%
3 Years: 2%
1 Year: 34%
Return on Equity
10 Years: 0%
5 Years: -1%
3 Years: 1%
Last Year: -7%

Balance Sheet

Standalone Figures in Rs. Crores / View Consolidated

Mar 2010 Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Sep 2021
32 32 32 34 33 34 34 34 34 34 34 34 34
Reserves 991 1,058 1,201 1,591 1,402 1,625 1,723 1,582 1,781 1,609 1,597 1,493 1,518
Borrowings 548 554 507 926 1,416 2,022 2,658 2,862 2,704 3,195 2,889 4,447 6,122
312 586 879 581 790 590 297 400 465 475 502 780 1,031
Total Liabilities 1,882 2,230 2,618 3,131 3,640 4,271 4,712 4,877 4,985 5,313 5,022 6,753 8,705
276 314 332 321 615 648 1,172 1,526 1,494 1,483 1,483 1,770 1,754
CWIP 22 4 142 489 382 667 210 4 8 9 18 73 80
Investments 1,148 1,234 1,354 1,339 2,048 2,378 2,623 2,785 2,828 2,705 2,614 3,998 5,591
436 678 791 981 596 578 707 562 655 1,116 907 913 1,280
Total Assets 1,882 2,230 2,618 3,131 3,640 4,271 4,712 4,877 4,985 5,313 5,022 6,753 8,705

Cash Flows

Standalone Figures in Rs. Crores / View Consolidated

Mar 2010 Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021
77 109 204 14 41 -124 -363 248 284 448 411 138
99 32 -4 -691 -240 -298 -1 -226 171 -214 3 -1,713
-190 -113 -184 652 230 456 251 -17 -406 218 -609 1,323
Net Cash Flow -13 28 16 -26 31 34 -112 5 49 452 -195 -251

Ratios

Standalone Figures in Rs. Crores / View Consolidated

Mar 2010 Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021
Debtor Days 50 40 34 35 24 26 52 30 22 31 37 49
Inventory Days 95 102 85 53 94 62 117 104 87 88 81 121
Days Payable 131 175 260 53 115 56 76 109 84 110 85 127
Cash Conversion Cycle 15 -32 -141 35 3 33 94 24 25 9 33 43
Working Capital Days 63 -13 -58 -25 -71 -37 102 24 14 12 4 -6
ROCE % 2% 6% 10% 5% 4% 2% 2% 1% 4% 8% 6% 2%

Shareholding Pattern

Numbers in percentages

Dec 2018 Mar 2019 Jun 2019 Sep 2019 Dec 2019 Mar 2020 Jun 2020 Sep 2020 Dec 2020 Mar 2021 Jun 2021 Sep 2021
74.72 61.33 61.33 61.38 61.39 62.21 64.20 64.96 66.37 67.19 67.19 67.18
11.93 12.12 11.87 11.90 11.99 11.22 9.27 9.06 8.59 7.79 7.76 8.45
4.79 4.70 4.59 4.38 4.64 4.62 4.71 4.69 4.82 5.06 5.17 3.76
8.56 21.85 22.21 22.34 21.98 21.95 21.82 21.28 20.22 19.95 19.88 20.61

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