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Godrej Industries gains after strong Q1 earnings

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Capital Market
Last Updated : Aug 12 2013 | 11:59 PM IST

Godrej Industries rose 2.14% to Rs 246.15 at 10:25 IST on BSE after consolidated net profit rose 28.5% to Rs 53.25 crore on 3.5% growth in net sales to Rs 1852.40 crore in Q1 June 2013 over Q1 June 2012.

The Q1 result was announced on Saturday, 10 August 2013.

Meanwhile, the S&P BSE Sensex was up 51.45 points or 0.27% at 18,840.79.

On BSE, 11,000 shares were traded in the counter as against average daily volume of 33,417 shares in the past one quarter.

The stock hit a high of Rs 248.70 and a low of Rs 243.50 so far during the day. The stock had hit a 52-week low of Rs 227.05 on 7 August 2013. The stock had hit a 52-week high of Rs 331.95 on 9 January 2013.

The stock had underperformed the market over the past one month till 8 August 2013, sliding 22.38% compared with the Sensex's 2.77% fall. The scrip had also underperformed the market in past one quarter, declining 23.56% as against Sensex's 6.01% fall.

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The large-cap company has equity capital of Rs 33.54 crore. Face value per share is Re 1.

Godrej Industries' consolidated profit before depreciation, interest and taxation (PBDIT) surged 48% to Rs 146 crore in Q1 June 2013 over Q1 June 2012. Profit before tax (PBT) jumped 92% to Rs 100 crore.

Godrej Agrovet's consolidated total income rose 27% to Rs 945 crore in Q1 June 2013 over Q1 June 2012.

Commenting on the company's Q1 performance, Mr. A. B. Godrej, Chairman, Godrej Industries said, "Our results this quarter have demonstrated the strength of our business model which captures a diverse range of businesses in some of the key growth sectors of the economy. Overall performance has been encouraging as some of the core operations registered sustained growth. Our agri businesses have commenced the year on a strong note with the top‐line increasing by 27% and operating profit increasing by 37%, driven mainly by the animal feed and agri‐inputs segments. Our joint ventures also reported improvement despite a volatile external environment as the impact of bird flu diminished and feed costs stabilized. Godrej Seeds continues to expand its revenues and outreach to newer geographies. Overall the quarter was a heartening period for Godrej Agrovet, encouraging us to gear up for greater opportunities in the coming future."

Godrej Properties has delivered healthy growth in earnings and bookings despite weak market conditions prevailing in the real estate industry, Mr. Godrej said. The company continued to build a robust development portfolio in high growth markets and added two new projects with 1.85 million sq. ft. of saleable area in Bangalore and NCR during the quarter. The momentum in new projects, strong brand equity and a differentiated business model should enable the company to deliver excellent performance in the coming years, he added.

Mr. Godrej said that the Godrej Consumer Products segment continues to deliver strong sales growth, in both its India business and its international operations. In the India business, it has grown significantly ahead of category growth. Its international portfolio is also scaling up well. The company continues to invest strongly in innovation and bringing new products to the market, Mr. Godrej added.

With regard to the company's Chemicals business Godrej said that the performance of the business continues to reflect the impact of an adverse global economic environment and increasing price of natural gas. While the company remains cognizant of extended period of challenges, it believes that the tide should turn and the business will again be in a position to deliver healthy performance, Mr. Godrej said.

Going forward, through our CREATE strategy, we will continue to strengthen our positions in all our core businesses while fostering an inspiring place to work and creating shared value for all our stakeholders., Mr. Godrej said.

Godrej Industries is in the businesses of Oleochemicals, surfactants, finance & investments and estate management. It has substantial interests in several industries including property development, oil palm plantation, animal feeds and agro-products, poultry, personal care and household care, etc., through its subsidiaries, associate companies and joint ventures.

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First Published: Aug 12 2013 | 10:25 AM IST

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