Godrej Industries lost 0.55% to Rs 278.35 at 9:40 IST on BSE after consolidated net profit declined 64% to Rs 65 crore on 18% growth in total income to Rs 2033 crore in Q3 December 2013 over Q3 December 2012.
The Q3 result was announced after market hours on Friday, 7 February 2014.
Meanwhile, the S&P BSE Sensex was down 4.88 points or 0.02% at 20,371.68.
On BSE, so far 9,052 shares were traded in the counter as against average daily volume of 34,417 shares in the past one quarter.
The stock was volatile. The stock lost as much as 1.91% at the day's low of Rs 274.55 so far during the day. The stock rose as much as 0.03% at the day's high of Rs 280 so far during the day. The stock had hit a 52-week high of Rs 324.50 on 5 July 2013. The stock had hit a 52-week low of Rs 218.50 on 28 August 2013.
The stock had outperformed the market over the past one month till 7 February 2014, advancing 2.15% compared with the Sensex's 1.53% fall. The scrip had also outperformed the market in past one quarter, declining 1.43% as against Sensex's 2.14% fall.
The company has equity capital of Rs 33.55 crore. Face value per share is Re 1.
Godrej Industries' consolidated profit before depreciation, interest and taxation (PBDIT) rose 47% to Rs 150 crore in Q3 December 2013 over Q3 December 2012.
The consolidated profit after tax (PAT) during the quarter was pulled down due to higher base in Q3 December 2012. The Q3 December 2012 results include profit from sale of Godrej Agrovet shares to a strategic partner. The PAT growth in Q3 December 2013 would have been 27%, if one excludes the impact of exceptional items, Godrej Industries said in a statement.
Commenting on the company's Q3 performance, Mr. A. B. Godrej, Chairman, Godrej Industries said, "I am pleased to share with you that the performance of our core businesses has been encouraging despite the overall challenging macro-economic environment. Momentum in our agri businesses continued with robust results in Animal Feed, Oil Palm, Agri-Input segments and agri joint ventures. The performance of the Animal Feed business was driven by improved demand in aqua feed, layer feed and cattle feed segments. Our oil palm business grew by 85% during the quarter driven by higher volumes and better realizations. The Agri-inputs segment witnessed healthy results led by growth across key product segments.
Godrej Properties has demonstrated a healthy growth in earnings and an ability to maintain growth in adverse market conditions. The company has witnessed a growth of 41% in EBITDA and 30% growth in net profit this year in the midst of a tough operating environment. On the sales front, we saw a 29% QoQ increase in value of sales bookings in the third quarter and we would continue to be focused on a high growth trajectory in the years ahead.
Godrej Consumer Products continues to deliver topline growth that is far ahead of the growth both for the overall FMCG sector and for the home and personal categories what we participate in. We have been consistently gaining share and strengthening our market positions. We have delivered net profit growth that is close to our topline growth. We continue to make right investments for the longer term while managing our business more prudently in the short term.
The profitability of the chemicals business was better this quarter compared to the corresponding quarter last year. Activity at our new Oleo-chemicals facility at Ambernath has begun and should be fully operational in Q4 FY 2013-14. I am pleased to share with you that the Chemicals business won the CII Environmental Best Practices Award 2013 for Innovation".
Godrej Industries' board of directors in its meeting held on Friday, 7 February 2014, approved the scheme of amalgamation of Wadala Commodities with Godrej Industries (the Scheme) and their respective shareholders under sections 391 to 394 of the Companies Act, 1956.
In consideration for the amalgamation of Wadala Commodities with Godrej Industries in terms of the Scheme and based on the share swap ratio, Godrej Industries will issue 1 fully paid up equity share of Re 1 each of Godrej Industries to the equity shareholders of Wadala Commodities whose name is registered in the Register of Members of Wadala Commodities on the record date (as may be determined in terms of the Scheme) for every 108 fully paid-up equity shares of Re 1 each of Wadala Commodities held by the equity shareholders of Wadala Commodities and 10 fully paid up equity share of Re 1 each of Godrej Industries, to the preference shareholder(s) whose name is registered in the Register of Members of Wadala Commodities on the record date (as may be determined in terms of the Scheme) against 50,00,000, 0.01% redeemable cumulative preference shares of Rs 10 each (Rs 9 called and paid up) held by the preference shareholder(s) of Wadala Commodities.
Further, in order to ensure that the interest of the public shareholders of Godrej Industries is not prejudiced and to ensure that there is no dilution of shareholding of the public shareholders of Godrej Industries pursuant to the amalgamation of Wadala Commodities with Godrej Industries, Godrej Industries would issue bonus equity shares of Re 1 each of Godrej Industries, credited as fully paid-up equity shares to its shareholders (except to the promoters and promoters group entities of Godrej Industries) whose name is registered in the Register of Members of the Company on the record date in the proportion of 1 new fully paid up equity shares of Re 1 each in Godrej Industries for every 1,250 fully paid-up equity shares of Re 1 held by them in Godrej Industries by way of capitalization of sum to the extent of Rs 67,680 standing to the credit of the General Reserve Account of Godrej Industries. The aforementioned issue of bonus shares shall also include issue of bonus shares upon exercise of outstanding stock options (whether vested or unvested) in accordance with the employee stock grant scheme of Godrej Industries in the aforesaid bonus proportion, Godrej Industries said.
The Scheme is subject to approval of High Court of Judicature at Bombay and High Court of Judicature at Madhya Pradesh, Indore Bench and the shareholders and creditors, if any, of Wadala Commodities with Godrej Industries, as may be directed by the High Court of Judicature at Bombay and High Court of Judicature at Madhya Pradesh, Indore Bench, Godrej Industries 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 and associate companies.
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