Godrej Industries Limited · 6/22 Godrej Industries Limited Q4 & FY 2006-07 Performance Update...

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Godrej Industries LimitedQ4 & FY 2006-07 Performance Update

Godrej Industries Limited

Performance Update

Q4 & FY 2006-07

25th May 2007

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Contents

• Performance Highlights

• Business Highlights

• Key Financials

• Key Ratios

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Amts in Rs. CroreAmts in Rs. Crore

Highlights Q4 & FY 2006-07

Q4 06-07

∆ Q4 05-06

FY06-07

∆ FY05-06

Total Income @ 203.0 5% 193.1 782.9 2% 802.7

Total Expenses 166.5 180.2 640.8 696.6

PBDIT 36.5 183% 12.9 142.1 34% 106.1

PBT * 19.5 3150% 0.6 79.6 44% 55.1

Net Profit 16.7 37% 26.5 78.1 10% 71.1

EPS** (Rs.) 2.3 37% 3.6 2.7 10% 2.4

@ Q4 & 12M Figures are not comparable with previous year figures on account of sale of Foods Division.

* excl. extraordinary items

** Annualised – Shares of FV Rs. 6 split into 6 shares of Re.1 each w.e.f. 01/09/06

(Standalone)(Standalone)

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Highlights FY 2006-07FY

06-07∆ FY

05-06Total Income 2465.7 17% 2106.2

Total Expenses 2282.8 1947.1

PBDIT 182.9 15% 159.1

PBT * 76.0 76.2

Net Profit 58.9 20% 49.2

EPS** (Rs.) 2.0 20% 1.7


** Annualised – Shares of FV Rs. 6 split into 6 shares of Re.1 each w.e.f. 01/09/06

(Consolidated)(Consolidated)

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GIL

CHEMICALS VEGOILS ESTATE FINANCE &INVESTMENTS

100 % 783 cr.

OTHERS

Businesses - FY (2006-07) Revenue

73 %

572 cr.

6 %

50 cr.

3 %

26 cr.

16 %

121 cr.

2 %

14 cr.

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Business HighlightsChemicals

• Market leader in India in Oleo-chemicals and Surfactants.

• Revenue growth of 12% for FY (FY 2006 – 07 : Rs. 572 cr. ; FY 2005 – 06 –Rs. 512 cr. )

• Exporting to more than 60 countries.

• Industry cyclicality; pressure on margins in Fatty Alcohol segment continued to impact the financial results.

• New Fatty Acid Distillation plant commissioned at Vikhroli to enhance capacity of higher end Fatty Acids.

• Valia factory received ‘Energy Efficient Unit’ award from CII.

• Awarded ‘Outstanding Exporter of the year’ in the Chemicals category in International Trade Awards 2006-07 organised by CNBC TV18 and DHL.

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Break-up of Sales – FY - 2006-07

AOS

(10%)

Fatty Alcohol(46%)

Fatty Acids(36%)

Glycerin(8% )

Chemicals - Rs. 572 cr.

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Our InvestmentsCompany Business At Cost

(Rs. Cr.)%

HoldingGodrej Consumer Products Ltd.

FMCG personal and household care products

92.2 10.2%

Godrej Agrovet Ltd. Animal Feeds, Agri Inputs, Poultry, oil palm & rural retailing

63.8 70.3%

Godrej Properties Ltd. Real Estate & Property Dev. 40.3 81.7%Godrej Sara Lee Ltd. Household Insecticides 47.3 20.0%Godrej Bev. & Foods Ltd. Foods & Beverages 102.0 48.0%Godrej International Ltd. International Trading 18.3 100%Godrej Global Solutions Ltd.

Infobiz 35.5 99.9%

CBay / Compass/ Avesthagen, etc.

BPO , Biotech, etc. 86.3

Total 485.7

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Major Investments…Godrej Consumer Products( FMCG – personal and household care)

• Consolidated sales revenue higher by 27% at Rs. 242 cr. in Q4 2006-07. • Q4 2006-07 PBDIT up by 13% at Rs. 44 cr.• Net Profit at Rs. 39.4 crore up by 29% in Q4 2006-07• EPS (not annualised) – Rs. 1.7 in Q4 2006-07• Final Dividend – 125% taking the total dividend payout at 375%• Acquisition of Rapidol, South Africa, entry into African market for hair colour

business.• New soap facility at Katha and hair colour & toiletries facility at Sikkim

significantly enhanced GCPL’s scale of operations• GCPL & SCA Hygiene Products AB, Sweden form a 50:50 JV to manufacture paper

based absorbent hygiene products • Godrej No.1 soap sales crosses Rs. 300 cr. for the year• ‘Business Superbrand’ status conferred on GCPL• Launched ‘Vigil’, India’s only grade 1 Health soap

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Major Investments…Godrej Consumer Products …..Contd.( FMCG – personal and household care)• Consolidated sales grew by 36% in 12M 2006-07• Continues to be second largest toilet soap manufacturer by value

– Sales of Toilet soaps rise by 18% in value terms.

• FY 2006-07 PBIDT higher by 22% at Rs. 182 cr.• Net Profit at Rs. 144 crore up by 19% in 12M 2006-07• EPS (annualised) – Rs. 6.4 in 12M 2006-07• Ranked 6th in the Best Employers’ Study conducted by Hewitt Associate

with Economic Times• Malanpur factory won Platinum award in India Manufacturing Excellence

Awards (IMEA) by Frost & Sullivan in Chemicals category & an award for TPM, Excellence by JIPM Solutions, Japan

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Major Investments…Godrej Agrovet

(Animal Feeds, Agri Inputs, Poultry, oil palm & rural retailing)• Q4 2006- 07 revenue growth of 31% qoq• FY 2006-07 revenue growth of 18% yoy• Avian Influenza and high prices of certain key raw materials impacted

the performance of the Animal Feed and Poultry businesses.• Eight new rural retailing “Aadhaar” stores opened in this quarter

(39 outlets opened till date)• Three “Nature’s Basket” outlets opened in Mumbai during the

quarter taking the total number of stores to 8. Nature’s basket retails fresh fruits, vegetables & herbs, speciality breads, cakes, etc.

• JV (49:51) named Godrej Gold Coin Aquafeed Limited with Gold Coin Group, Singapore for developing and marketing special feed for shrimp formed

• MOU with IJM Plantations, Berhad a listed Malaysian company, to promote Oil Palm Plantation in India

• Forayed into ready-to-cook snacks – “Godrej Yummies”

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Major Investments…Godrej Properties(Real Estate & Property Development)

• Q4 2006-07 – Revenue growth of 127%• Q4 2006-07 – PBT growth of 185%• FY 2006-07 - Revenue growth of 95%• FY 2006-07 - PBT growth of 158%• Second Interim dividend of 233% paid in Mar-07, totalling to 419% for the year.• “ Planet Godrej ” large residential project in Mumbai.

– winner of prestigious Pinnacle Award 2006 by Zee Business in the category of ‘Best Upcoming Real Estate Project’ in India.

– Project of five 50-storeyed towers located in close proximity to Mahalaxmi race course and Willingdon Club.

– Array of external facilities (landscaped terrains and walk ways, Club house, tennis & squash courts, swimming pool, fitness and meditation centre, games room, health centre etc).

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Major Investments…Godrej Properties…. Contd.(Real Estate & Property Development)

• Developing residential and Commercial Properties / Malls / IT Parks– Signed an agreement for developing a residential project on approx.

13 acres of land at Bangalore and 12 acres of land at Pune– Two IT parks over 35 lac sq. ft. in Salt Lake area.– Development of IT park at Hyderabad covering an area of approx.60 lac sq. ft

Total area of over 2 crore sq. ft. under development

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Major Investments…Godrej SaraLee (Household Insecticides)• Major Brands - “Good Knight” , “Jet” and “Hit” under household

insecticides and “Ambi Pur” range in Air Care segment• Market leader in Household Insecticides• “Good Knight” brand voted the most Trusted Household care brand by

Brand Equity of Economic Times• “Ambi Pur” brand forayed into the Home Perfume arena through launch

of Ambipur Aerosols. • “Good Knight Advanced Active + System” launched in the liquid

repellant segment. “Seek and Kill” Aerosol launched under the brand “Hit”.

• FY 2006-07 revenue growth of 17%• FY 2006-07 profit growth of 23%• Interim dividend of 113% in Q4 2006 – 07 & YTD 2006-07 : 313%

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Major Investments…

Godrej Global Solutions Limited (Infobiz solutions)

• Key Domains : Healthcare, Finance & Accounts.

• Q4 2006-07 Revenue growth – 14%

• FY 2006-07 Revenue growth – 45%

• Ramp up of Indian operations for existing clients

– Headcount capacity about 800

• Awarded ISO-27001 & ISO-9001 Certification - the highest certification standard on Information Security - for all the services provided.

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Major Investments…Godrej Beverages & Foods Limited (GBFL)(Foods, Beverages, confectionery businesses)• Products sold under brands Jumpin, Sofit, Xs, Cooklite, Godrej Tea & under

Nutrine confectionery brand like Mahalacto, Aasay, Superstar, Aamras, Gulkand etc.

• Inorganic expansion by acquiring Nutrine Confectionery Company– Entry into the confectionery category; Portfolio includes Toffees, Eclairs, hard

Boiled Candies, Market leader with 23% market share– Strong Brand equity– Access to strong distribution network (one million retail reach) backed by

established brands

• Signed a JV with Hershey Company, USA– Hershey to hold 51% stake– JV gives GBFL a strategic long term partner with global brands & international

technology to grow its Foods & Beverages business.

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Major Investments…Godrej Beverages & Foods Limited (GBFL) … Contd.

(Foods, Beverages, confectionery businesses)• Jumpin sales increases by 40% qoq• Sofit sales increases by 23% qoq• Confectionery sales increases by 7% qoq.• Chittoor (confectionery) plant obtained ISO-9000 & HACCP.

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Standalone Financials

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Summarised Profit & Loss AccountQ4 Q4

0606--0707∆ Q4 Q4

0505--0606FYFY

0606--0707 ∆ FYFY0505--0606

Total Income 203.0 5% 193.1 782.9 2% 802.7

Expenditure 166.5 180.2 640.8 696.6

PBDIT 36.5 183% 12.9 142.1 34% 106.1

Depreciation 6.0 5.6 24.2 22.6

Interest 11.0 6.7 38.3 28.4

PBT* 19.5 3150% 0.6 79.6 44% 55.1

PAT 16.7 37% 26.5 78.1 10% 71.1


@ Q4 & 12M Figures not comparable on account of sale of Foods Division


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Balance SheetRs. Crore

Liabilities Assets31-03-07 31-03-06 31-03-07 31-03-06

Equity Capital 29.2 29.2 Net Fixed Assets 287.1 286.0Reserves 399.6 320.0 Investments 485.7 371.3

Debt 467.7 327.1 Net current Assets 197.6 84.9

Def. Tax Liability 39.8 38.2 Dividend Payable (34.1) (27.7)

Total 936.3 714.5 Total 936.3 714.5

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Key Ratios

* On Closing Capital Employed

** excl. extraordinary items

Q406-07

Q405-06

FY06-07

FY05-06

PBDIT / Income 18.0% 6.7% 18.2% 13.2%

PBT **/ Income 9.6% 0.3% 10.2% 6.9%

PAT / Income 8.2% 13.7% 10.0% 8.9%

ROCE* 12.8% 3.8% 12.4% 10.9%

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Godrej Industries Limited · 6/22 Godrej Industries Limited Q4 & FY 2006-07 Performance Update...

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