Dalal Street Investment Journal

Godrej Industries' net profit dips in Q4FY16

Godrej Industries has declared its Q4FY16 results on May 25. The company’s revenue has increased by 10.99 per cent to Rs 2563 crore in Q4FY16 as compared to same period in previous financial year. However, its EBITDA has declined by 9.93 per cent to Rs 105 crore in Q4FY16 on a yearly basis. Godrej Industries’ EBITDA margin has contracted by 95 basis points to 4.11 per cent in Q4FY16 as compared to same period in previous fiscal year. The company’s Net Profit also has declined by 16.43 per cent to Rs 116 crore in Q4FY16 on a yearly basis. Its Net Profit margin has contracted by 149 basis points to 4.53 per cent in Q4FY16 as compared to same period in previous financial year.

On segmental front, Godrej Industries’ earned by 24.64 per cent from Animal feeds segment, 21.32 per cent from Veg oils segment, 19.73 per cent from Estate & Property development segment, 10.7 per cent from Chemicals segment, 3.47 per cent from Finance & Investment segment and remaining 20.14 per cent from others segment during Q4FY16.

On yearly front, Godrej Industries’ top line stands at Rs 10753 crore with a growth of Rs 16.5 per cent in FY16 on a yearly basis. The company’s EBITDA too has risen by 30.97 per cent to Rs 631 crore in FY16 as compared to previous financial year. Its EBITDA margin has expanded by 65 basis points to 5.87 per cent in FY16 on a yearly basis. Godrej Industries’ Net Profit also has increased by 20.36 per cent to Rs 484 crore in FY16 as compared to previous financial year. The company’s Net Profit margin has expanded by 15 basis points to 4.51 per cent in FY16 on a yearly basis.

The share price of Godrej Industries’ has decreased by 2.55 per cent on bourses in early trades; and is trading at Rs 346.6 on an intraday basis.

Godrej Industries is in the businesses of manufacture and marketing of oleo-chemicals, their precursors and derivatives, bulk edible oils, estate management and investment activities. The company operates in four segments viz. Chemicals, Estate, Finance & Investments and others.