Corporate Finance

Godrej Industries Limited

Submitted to - Submitted by –

Prof. Ashok Malhotra PGDM | C - Group 7

Pallavi Singh (17DM156)

Rishabh Agarwal (17DM185)

Rishabh Malhotra (17DM186)

Sandeep Bansal (17DM207)

Sanjukta Chakraborty (17DM208)

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 INDEX

Particulars Page Number

1. CHEMICAL INDUSTRY 4
1.1 Introduction 4
1.2 Market Size 4
1.3 Growth Rate 5
1.4 Segments In Industry 5
1.5 Major Players In Market 6
1.6 Government Initiatives 6
1.7 Future Prospects & Investment Opportunities 7
2. OLEO CHEMICAL INDUSTRY IN INDIA 9
2.1 Introduction 9
2.2 Industry At Global Scenario 10
2.3 Oleo Chemical Business & India’s Opportunities 11
3. GODREJ INDUSTRIES LTD. 12
3.1 Introduction 12
3.2 Major Competitors 13
3.3 Recent Developments 13
4. CAPITAL STRUCTURE 14
4.1 Debt 15
4.2 Deposits 15
4.3 Comparison With Competitors 15
5. DU PONT ANALYSIS 16
5.1 Net Profit Margin 17
5.2 Asset turnover ratio 17
5.3 Financial Leverage/Equity Multiplier 18
5.4 Return on Equity 19
5.5 OTHER RATIOS 20
5.5.1 Debt To Equity 20

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 5.5.2 Return On Asset 21
5.5.3 Issuance Of Bonus Shares 22
6. COST OF CAPITAL 23
6.1 Calculation of Cost of Equity 23
6.2 Calculation of Cost of Debt 25
6.3 WACC Composition 26
6.4 Risk, Price And Valuations 27
7. DIVIDEND PAYOUT 29
8. CONCLUSION 30
9. Logbook 32
10. Individual Contribution 34
11. References 35
12. Annexure 36

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1. CHEMICAL INDUSTRY

1.1. Introduction –

Chemical industry is a knowledge as well as capital intensive industry. It plays a

significant role in the global economic and social development. It is also a human resource
intensive industry and hence employs a large number of people. Globally, more than 20
million people are expected to be employed in this industry. The diversification within the
chemical industry is large and covers more than eighty thousand commercial products.
Indian chemical industry comprises of both small scale as well as large scale units. The
large scale units are able to set up capital intensive projects with long gestation periods.
While the fiscal incentives provided to small scale units earlier led to development of large
number of small and medium enterprises (SME). Over the last five years Indian chemical
industry has started to evolve rapidly. With a large talent pool available, the focus has also
been towards investments in R&D. India's competence in this knowledge intensive
industry is increasing; however the tapped potential is very limited. The current low per
capita consumption (10 kgs for polymers in India as compared to world average of 25 kgs)
suggests that the demand potential is also yet to be realized. Moreover India has a very
strong outlook for the key end user industries (e.g. Packaging is expected to grow at 15%
p.a. over the next five years, Electronic is expected to grow at 12% p.a. over the next five
years, Construction and Automotive both sectors are expected to grow at 12% p.a. over
the next five years). Hence, going ahead the demand of chemical products is expected to
surge at 7-8 % p.a. over the next five years.

1.2. Size:

Global chemical market size was estimated at $3.9 trillion in 2013* and is expected to
grow at 5-6% per annum over the next decade to reach ~$5.1 trillion by 2018. Despite its
large size and significant GDP contribution, Indian chemical industry currently accounts
for only 3 % of the world chemical market.

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1.3. Growth rate:

The Chemical Industry in India which generates almost 13% of country's total export
is growing annually at a growth rate anywhere between 10% and 12%. Considering the
growth trends in different sections of the chemical industry in India, one can easily
place the industry among major contributors towards the overall growth of the country's
economy. To improve the sales network for the Indian chemicals, the manufacturers
and suppliers need to rely upon the online b2b networks.

1.4. Segment in Industry:

The chemical industry in India is divided into various segments. Some of the main
segments and their progress statistics are as below:

 Inorganic chemicals constitute one of the major segments of the country's total
chemical production. A growth rate of 9 percent is recorded for the segment that
includes alkalis, fertilizers and detergents as main chemicals.

 Drugs and pharmaceuticals are among the most exported chemicals from India.
This segment of the Indian chemical industry ranks at 4th position in the world.
The growth rate of 8 to 9 percent is recorded by the segment.

 Agro-chemical products include pesticides and fertilizers as the main chemicals

in this category. The 10 percent domestic market growth rate is recorded by this
segment.

 Dyes and paints segment has a growth rate of about 12 percent. The segment also
includes polymers and other related chemicals.

 Petrochemicals in the Indian chemical manufacturing industry have the fastest

growth rate of 15 percent.

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1.5. Major Players in market:

 Drugs And Pharmaceuticals: Ranbaxy, Shasun, Cipla, Dr. Reddy’s, Lupin,

Cadilla, IPCA, Sun, Wockhardt, Aurobindo, Kopran

 Petrochemicals: Reliance Industries Ltd, Indian Oil Corporation

 Pesticides, Fertilizers And Agro-Chemicals: United Phosphorus, Rallis, Excel

Industries, Hoechst, Agrevo, Novartis

 Specialty And Fine Chemicals: Asian Paints, Nerolac, ICI, Clariant, Hindustan
Inks

1.6. Government Policies and FDI Investments:

Government recognizes Chemical industry as a key growth element of Indian economy.

In Chemical Sector, 100% FDI is permissible. Manufacture of most of chemical
products is delicensed. The entrepreneurs need to submit only IEM with the DIPP
provided no locational angle is involved.

National Chemical Policy: National Chemical Policy is being proposed for a long
period which needs to be formulated to provide enabling environment, infrastructure
and duty structure for the Chemical industry in the country. It will place a framework
for promoting safety & security and R&D in the sector. This will help India’s chemical
industry to grow and become more competitive.

FDI Facts

1) 14.1 bn FDI in chemicals (in USD) during April 2000 - September 2017

2) 2X Growth in FDI equity inflows (FY 2014 to FY 2016)

3) 100% FDI is allowed under the automatic route in the chemicals sector

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1.7. Future Prospects & Investment Opportunities

Indian chemical industry is expected to register a growth of 8-9% in the next decade
and is expected to double its share in global chemical industry to 5-6% by 2021. Indian
Chemical industry has the potential to grow significantly provided some of the key
growth imperatives are taken care of. Securing Feedstock, Right Product Mix, M&A
opportunities are currently the key imperatives for chemical industry in India.

Looking Forward

The government has already begun the process of getting the necessary consensus from
all the stake holders to pave the way for implementing this landmark tax reform.
Though the exact details are still sketchy, the structure and deliverables have been
clearly laid down for all to see. As Indian pharmaceuticals companies look forward to
revenue growth on one side and the need to reduce costs, GST offers a great opportunity
to revisit their Supply Chain & distribution strategy to develop an agile, customized
and cost-efficient supply chain. Companies need to act now to assess the impact of GST
on their businesses and functions and develop an action plan and road map for the
future. Those who move early are likely to gain an advantage on cost and service levels
over their competitors and deliver a better value proposition to the customer.

Export Highlights

 India exported inorganic chemicals valued at 1.356 US$ Bn, organic chemicals at
12.022 US$ Bn and agro chemicals (fertilizers) at US$ 81.66 US$ Mn respectively.
 North America, Western Europe, Japan and emerging economies in Asia and Latin
America are some of the major markets for Indian chemicals.
 The US, the Netherlands and China are the leading export destinations for Indian
inorganic, organic and agro chemicals.

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Following are some of most imported chemicals in India

1. Methylene diphenyl diisocyanate: This chemical is typically not produced in India and
therefore, needs to be imported. Chemical importers get this product because it is primarily used
in the production of rigid polyurethane that is used in the plastics industry.
2. Cyclic hydrocarbons: This is another chemical that heavily features in the list of chemicals
imported in India.
3. Acyclic alcohols: This sub-set of organic chemicals is also heavily imported in India. It is
estimated that combined with cyclic hydrocarbons, acyclic alcohols are two of the most imported
organic chemicals in the country.
4. Caustic soda: This chemical is widely used for many industrial processes. It is used in water
treatment, the manufacture of soaps, and also in the food industry.
5. Liquid chlorine: Just like caustic soda, this chemical is also widely used in many industries
including the pharmaceuticals industry. In fact, we witness the use of chlorine in our everyday
lives as well in the form of disinfectants for swimming pools and drinking water as well.

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2. OLEO CHEMICAL INDUSTRY IN INDIA

2.1. Introduction
Oleo chemicals are industrially produced chemicals derived from animal fats or vegetable
oils. Since oleo chemicals are less toxic as compared to conventional petrochemical
products, various end use industries such as those engaged in manufacturing of personal
care products, detergents, soaps and agrochemicals, are substituting their requirement for
petrochemicals with oleo chemicals.

Oleo chemicals are segmented into four categories- fatty acids, glycerin, fatty
alcohols, and others. In 2014, fatty acids dominated oleo chemicals market in India,
accounting for the largest volume share, followed by glycerin, fatty alcohols and others,
respectively. The oleo chemicals market in India consists of a large number of global
as well as domestic manufacturers. Leading players operating in the country’s oleo
chemicals market include VVF (India), Godrej Industries Limited, 3F Industries
Limited, and Jocil Limited

According to “India Oleo chemicals Market Forecast & Opportunities, 2020”,

oleo chemicals market in India is projected to witness growth at a CAGR of over 5%

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 during 2015 - 2020. Easy access to raw materials, cost effectiveness and growing
inclination towards greener chemicals are the major factors fueling market growth.

Major Players in market:

 Fatty Acids: Asian agri, IOI Group, Wilmar, KLK OLEO, Godrej
 Fatty Alcohols: P&G, Shell Chemicals, BASF, Ecogreen Oleo chemicals,
Kao, Sasol

2.2. Industry At Global Scenario:

Global Oleo chemicals Market was valued at $17,964 million in 2016 to reach $28,728
million by 2023, and is anticipated to grow at a CAGR of 7.0% from 2017 to 2023.

Asia-Pacific Oleo chemicals Market Size

Asia-Pacific witnessed the leading position in the global oleo chemicals market, owing to
the strong raw material base and expanding world scale plants. Shift in consumer

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 preference for renewable products and low manufacturing costs are the factors that drive
the market growth.

2.3. Oleo Chemical Business And India Opportunities

• Oleo chemical business, perceived as sustainable and green, is growing at constant
rate.
• India has big potential in oleo chemical, especially in Personal Care, Soap,
detergents and manufacturing industry.
• The availability of unsaturated oil can also create potential for oleo chemical
derivatives like poyols and bio lubricants.
• The market competition requires the setup of oleo chemical complexes, which have
to be flexible and able to provide a wide range of products

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3. GODREJ INDUSTRY
3.1. Introduction:
Godrej Industries is an Indian company that manufactures and markets oleo chemicals,
edible oils, and Vanaspati as well as bakery fats.
The chemical division manufactures and markets more than 100 chemical products for
use in over 24 industries. The companies’ products are also exported to more than 80
countries in North as well as South America, Asia, Europe, Australia and Africa.
The company is India’s leading oleo chemicals manufacturer. It manufactures a wide
range of products for use in home, personal care, pharmaceutical and food industries.
The chemical division of the company manufactures the following products:
1. Fatty Alcohols
2. Fatty Acids
3. Surfactants
4. Glycerin
5. Oleo Derivatives & Specialty Chemicals

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3.2. Major Competitors
The major competitors to Godrej Industries Ltd. are as follows:
1. Aarti Industries Ltd.
2. TATA Chemicals Ltd.
3. UPL Ltd.
4. Gujarat Fluoro Chemicals Ltd.
5. GHCL Ltd.
6. Pidilite Industries Ltd.

3.3. Recent Developments:

In the financial year 2016-17, the company’s PBT was 289.57 crore as compared to
186.60 crore in the previous year.
The company’s revenue from operations for the financial year ending 31st March was
8482.53 crore as compared to 7549.30 crore in the previous year.
The company’s consolidated net profit for Q3FY18 declined to Rs. 20.31 crore.
The consolidated revenue for Godrej Industries Ltd. for Q3FY18 is 2,458.4 crore (a
14.9% increase as compared to previous year).

Figure 1- Godrej Industries Ltd. Stock Price (5 years)

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4. CAPITAL STRUCTURE:

The company’s capital from equity shares for the last five financial years are as follows:

March 31, March 31, March 31, March 31, March 31,
2013 2014 2015 2016 2017
Share 33.52 Cr. 33.12 Cr. 33.59 Cr. 33.60 Cr. 33.61 Cr.
Capital
No. of Shares 335,165,917 331,122,871 335,881,974 335,988,807 336,139,786
Venture 0 0 0 0 0
Capital
Investments

Share Capital
33.7
33.6
33.5
33.4
33.3
33.2
33.1
33
32.9
32.8
2013 2014 2015 2016 2017

Share Capital

Observations:

 Share Capital has been increasing continuously from the last four consecutive years.
 There was no investments made by venture capital institutions throughout.
 However, in the financial year 2016-17, FII’s increased their investments from 4, 78,
48,443 shares at the beginning of the year to 4, 97, 29,927 at the end of the year.
 Capital was also raised using debt.

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4.1 Debt:
 Secured Loans:
 Principle Amount: 22.8
 Interest accrued but not due: 0
 Addition in Indebtedness during the financial year: 0.3
 Reduction in Indebtedness during the financial year: -22.8
 Indebtedness at the end of the financial year:
o Principal amount: 0.3

 Unsecured Loans:
 Principle Amount: 2614.3
 Interest accrued but not due: 7.1
 Addition in Indebtedness during the financial year: 2798.9
 Reduction in Indebtedness during the financial year: -2552.9
 Indebtedness at the end of the financial year:
o Principal amount: 2861.3
4.2 Deposits:
 Principle Amount: 21.3
 Interest accrued but not due: 8.6
 Addition in Indebtedness during the financial year: 0
 Reduction in Indebtedness during the financial year: -22.8
 Indebtedness at the end of the financial year:
o Interest accrued but not due: 6.1

4.3 Comparison with Competitor:

 TATA Chemicals, a major competitor to Godrej Industries Ltd., made a revenue of
6470.92 crore from its operations for the financial year 2016-17.
 The PBT for the same was 794.03 crore.
 The revenue made by GIL was 8,482.53 crore with a PBT of 289.57 crore.

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 TATA CHEMICALS GIL
REVENUE FROM OPERATIONS 6470.92 8,482.53

PBT 794.03 289.57

PERCENTAGE OF PROFIT TO 12.27% 3.41%
REVENUE

Although the revenue of GIL was much more than TATA Chemicals, but the profits made by
TATA are higher than that of GIL. This has been due to high operational costs that GIL had
undergone, whereas, TATA had comparatively lower operational costs.

5. DU PONT ANALYSIS

Mar- Mar- Mar- Mar- Mar- Mar- Mar- Mar- Mar- Mar-
YEAR
2017 2016 2015 2014 2013 2012 2011 2010 2009 2008

PATM 1.46 1.05 4.14 3.73 4.19 3.48 5.74 4.93 2.31 4.77
(%) % % % % % % % % % %

Sales/To
tal 133.9 125.8 139.4 159.6 144.5 133.7 157.7 95.84 108.4 117.1
Assets(x 1% 0% 4% 1% 6% 3% 4% % 5% 8%
)

Assets
to 195.4 197.3 205.1 181.4 155.1 177.3 142.8 201.7 220.1 184.1
Equity 8% 9% 0% 5% 4% 0% 4% 6% 6% 0%
(x)

ROE 3.82 2.60 11.84 10.81 9.39 8.25 12.93 9.53 5.52 10.30
(%) % % % % % % % % % %

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 5.1. Net Profit Margin:

Net profit margin of a company helps us to understand how exactly a company is

generating from its net sales. For calculating Net Profit margin we compute the ratio of
net profit to net sales. So the total revenue the company is left with after every
deducting all expense from its sales has shown a drastic decrease in the past 2 years.
This trend can be probably due to an unexpected increase in other manufacturing
expenses which was observed in the year 2015 and 2016. There was a sharp decrease
in trend of PAT from 382.24 in 2015 to 77.91 in 2016 and 122.16 in 2017 the probable
cause behind this could be company’s engagement in acquisition of assets and joint
ventures which they have mentioned as extra expense in their notes to accounts. Also
significant increase was observed in other manufacturing expenses reason being
acquisition.

PATM (%)
7.00%
6.00%
Net Profit Margin

5.00%
4.00%
3.00% 5.74%
4.77% 4.93%
2.00% 4.19% 3.73% 4.14%
3.48%
1.00% 2.31%
1.05% 1.46%
0.00%
Mar-08 Mar-09 Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17
Years

5.2. Asset Turnover-

This ratio helps us to determine whether the company is utilizing its assets efficiently
in order to generate sales revenue. Although the from sales perspective company has
seen a steady increase over the years only with a drop in the year ending 2016 followed
by a significant increase in the next year due to company’s indulgence towards
acquisition of more assets. Also it can be seen that the depreciation value charged is

17
 towards an increasing trend. Hence as compared to the income from sales the efficient
utilization of assets is comparatively low in the company. Also the agricultural sector
had been worst hit due to back to back poor monsoon seasons thereby affecting the
agri-business.

Sales / Total Assets(x)

180.00%
160.00%
140.00%
120.00%
Asset turnover

100.00%
80.00% 157.74% 159.61%
144.56% 139.44%
133.73% 125.80% 133.91%
60.00% 117.18% 108.45%
95.84%
40.00%
20.00%
0.00%
Mar-08 Mar-09 Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17

5.3. Financial Leverage or Equity Multiplier –

Assets to Equity (x)

250.00%

200.00%
LEVERAGE

150.00%

100.00%

50.00%

0.00%
Mar-08 Mar-09 Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17
Years

Assets to Equity (x)

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 This ratio helps us ascertain how the company has been financing its assets and business
operations i.e. either by indulging into leverage or going the conservative way that is by
increasing the number of investors by selling the shares of ownership. Over the years the
company has shown an unstable fluctuation in their leveraging as it has seen some peaks
in the long run that is as compared to equity shareholders it has moved towards financing
through debt keeping in mind that financial leverage is nothing but an double edged sword
that has the capability of magnifying both profits as well as losses.

5.4. Return On Equity –

ROE helps us determine profitability of the company i.e. profit generated on money
invested by the shareholders. The trend in total shareholder’s fund over the years have been
in a constant increase mode with a slight dip at end of March 2016 at 3001.71Cr from
3227.25Cr at the end of Mar 2015. Due to low PAT there has been significant decrease in
return on equity at the end of financial year 2016. The low profit can be due to lack in sales
volume as the agri-sector was worst hit during that time thus demand factor comes to play.
A decline in ROE signifies that the company’s operation are not efficiently putting the
investor’s money into use. The only problem with ROE is that ignores the factor debt as
company can use debt to maximize its profits.

12.93%
11.84%
10.81%
RETURN ON EQUITY

10.30%
9.53% 9.39%
8.25%

5.52%
3.82%
2.60%

Mar-08 Mar-09 Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17
YEARS

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 5.5 RATIOS WHICH HOLD SIGNIFICANCE IN ASCERTAINING A COMPANY’S
PROFITABILITY AS WELL AS SOLVENCY:

5.5.1 DEBT TO EQUITY:

YEAR END TOTAL LIABILITY SHAREHOLDER'S FUND DEBT/EQUITY

MAR-2008 2515.53 1366.42 1.840963979
MAR-2009 3099.67 1407.89 2.201642174
MAR-2010 3562.24 1765.58 2.017603281
MAR-2011 2757.53 1930.56 1.428357575
MAR-2012 4196.68 2367.01 1.772987862
MAR-2013 4817.46 3105.28 1.551377009
MAR-2014 4960.86 2734.06 1.814466398
MAR-2015 6619.19 3227.25 2.051031064
MAR-2016 5925.03 3001.71 1.973884886
MAR-2017 6246.84 3195.62 1.95481315

Observation:

The Debt to Equity ratio helps in determining how much a company is using debt to finance its
assets as compared to the shareholder’s fund. At the end of March 2015 the company was indulging
into more of debt as compared to equity to finance its assets with D/E at 2.05 that means the
company has been financing its growth by virtue of debt thereby resorting to aggressive leveraging
hence going for comparatively higher risk. Financing by virtue of debt is risky because no doubt
that it can magnify your profits but it has the potential to magnify your losses as well. Thus the
company relies on debt in order to meet its liabilities as liabilities are greater that assets.

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 Debt/Equity
2.5

2
Debt to Equity

1.5

0.5

0
Mar-2008 Mar-2009 Mar-2010 Mar-2011 Mar-2012 Mar-2013 Mar-2014 Mar-2015 Mar-2016 Mar-2017
Years

5.5.2. RETURN ON ASSET

YEAR END PAT TOTAL ASSETS ROA

MAR-2008 140.69 2515.53 5.59%
MAR-2009 77.7 3099.67 2.51%
MAR-2010 168.2 3562.24 4.72%
MAR-2011 249.57 2757.53 9.05%
MAR-2012 195.26 4196.68 4.65%
MAR-2013 291.61 4817.46 6.05%
MAR-2014 295.52 4960.86 5.96%
MAR-2015 382.24 6619.19 5.77%
MAR-2016 77.91 5925.03 1.31%
MAR-2017 122.16 6246.84 1.96%

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 Observation –

It depicts the percentage of profit a company earns in relation to its total assets i.e. how well the
company is managing its assets to generate profits. In the course of time ROA has fallen sharply
and this possess a negative impact on the minds of the investors as an investor is only keen to
know how well the company can convert its investment in assets into profits. An investor looks
out at ROA to judge the profitability of the company because capital assets are the biggest
investments made.

ROA
10.00%
9.00%
8.00%
7.00%
6.00%
5.00%
4.00%
3.00%
2.00%
1.00%
0.00%
Mar-2008 Mar-2009 Mar-2010 Mar-2011 Mar-2012 Mar-2013 Mar-2014 Mar-2015 Mar-2016 Mar-2017

5.5.3. ISSUANCE OF BONUS SHARES

YEAR BONUS RATIO BOOK VALUE (UNIT CR) EPS (UNIT CR)
2015 0.909722222 49.25 4.43

Observation-
During the year under review company had allotted 106748 equity shares of Rs 1 each upon exercise
of stock option under Company’s Employee Stock Grants Scheme and 85 bonus equity shares on ESGS
in compliance with the scheme of amalgamation of Wadala Commodities Limited with the Company.
Consequently, the paid up share capital the Company had increased from Rs 33,58,81974/ divided into
33,58,81,974 equity shares of Rs 1 each to Rs 33,59,88,807 divided into 33,59,88,807 equity shares of

22
Rs 1 each. During the year 2014- 2015, GIL ESOP Trust had received 3,348 bonus shares. The total
excess shares at the yearend 2014-2015were 5, 66298 (previous year 12, 68,487). 67,589 equity shares
have been allotted as fully paid up bonus shares to the non-promoter shareholders of the Company in
the year 2015-2016.

6. COST OF CAPITAL

6.1. Calculation of Cost of Equity (Ke)

Cost of equity is the required rate of return that an investor expects against the risk
that he will be taking by buying the stock/ asset of a particular company.

Year Capital EPS MPS Cost of Equity

2017 33.61 13.65 849.85 1.606166
2016 33.6 13.5 688.33 1.961269
2015 33.59 11.4 598.3 1.902056
2014 33.11 8.81 419.32 2.101021
2013 33.52 8.7 391.18 2.224040
2012 31.76 6.15 246.85 2.491392
2011 31.76 7.86 193.85 4.054681
2010 31.76 5.3 141.9 3.735025
2009 31.98 3.07 65.17 4.710756
2008 31.98 5.6 62.45 8.967174
`

The above table shows the cost of equity of Godrej Ind. Ltd. For the last 10 years.

The method used for calculation of Cost of Equity is Earnings Yield method which is the earnings
per share for the most recent 12-month period divided by the current market price per share. The
earnings yield (which is the inverse of the P/E ratio) shows the percentage of each rupee invested

23
in the stock that was earned by the company. The earnings yield is used by many investment
managers to determine optimal asset allocations.

In the above table we used the following formulae for the calculation of Cost of Equity:

Ke = Eps/Mps

From the above table it can also be observed that the share capital of Godrej has been increasing
since 2008. Along with the share capital the EPS has also drastically jumped from 5.6 to 13.65
which signifies that profits earned from 1 unit of share has been increasing which reflects the
growth of the company

Cost of Equity
10.0
9.0
8.0
7.0
6.0
5.0
Cost of Equity
4.0
3.0
2.0
1.0
0.0
2017 2016 2015 2014 2013 2012 2011 2010 2009 2008

Here the graph shows that the required rate of return has been decreasing over the years. It is
because of the fact that the rate at which the market price per share is increasing is much more than
that of Earning per share.

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 6.2 Calculation of Cost of Debt (kd)

Cost of debt refers to the finance cost or the interest that a company pays on the debt
raised. To calculate the Cost of debt, we have used the following formulae:

Kd = (1-Tax rate) Interest/Total Debt

Year Total debt Interest paid PBT Cost of debt

2017 10547 207.86 -145.4 1.38%

2016 10731 191.98 150.24 1.25%

2015 9126 147.74 132.17 1.13%

2014 7411 94.84 124.88 0.90%

2013 5634 64.82 97.16 0.81%

2012 5371 70.53 201.05 0.92%

2011 3082 63.12 136.01 1.43%

2010 2307 50.61 79.99 1.54%

2009 2513 50.39 16.5 1.40%

2008 2048 33.67 107.72 1.15%

Observation:

From the above table it can be observed that the total debt of Godrej has increased more than five
folds in the last 10 years. Along with it Godrej has also increased its risk because it has to pay
fixed rate of interest on the debt borrowed.

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 Cost of debt
1.80%
1.60%
1.40%
1.20%
1.00%
0.80%
0.60%
0.40%
0.20%
0.00%
2017 2016 2015 2014 2013 2012 2011 2010 2009 2008

From the above graph it can be observed that the cost of debt is highly fluctuating and is lowest in
the year 2013 and highest in 2010.

6.3 Weight of debt, equity and average cost of capital

Year Weight of debt Weight of equity Weighted cost of capital

2017 0.1444 0.8556 0.1779
2016 0.1801 0.8199 0.1676
2015 0.1481 0.8519 0.1616
2014 0.1183 0.8817 0.2082
2013 0.0856 0.9144 0.2189
2012 0.0581 0.9419 0.2112
2011 0.0874 0.9126 0.2106
2010 0.109 0.891 0.2179
2009 0.2632 0.7368 0.1865
2008 0.0493 0.9507 0.1876

26
As in the previous section we have seen that the total debt of Godrej. Has significantly increased
over the period of last 10 years, implies that weight of debt in the total capital has also increased.
It was 0.0493 in 2008 and 0.1444 in 2017.

6.4 Risk, price and valuations of Godrej Industries Ltd.

31_Mar 31_Mar 31_Mar 31_Mar 31_Mar 31_Mar 31_Mar

Year
_17 _16 _15 _14 _13 _12 _11
Market
16949.2 12115.8 11635 10551.4 9891.08 8209.34 5791.26
cap
Dividend
0 0 0.01 0.01 0.01 0.01 0.01
Yield
Earning
0 0 0 0 0 0 0
Yield
Account
Cost of 0.0726 0.0721 0.0731 0.067 0.07 0.1392 0.1139
Debit
Cost of
Equity
0.185938 0.182354 0.1722 0.223568 0.231333 0.218193 0.222971
(CAPM
Model)
Credit/Def
ault 0.12 0.06 0.06 0.05 0.04 0.0275 0.0325
Spread
Levered
1.21 1.15 0.98 1.84 1.97 1.75 1.83
Beta
PEG (Price
by earning
0 1283.67 325.79 367.33 1.89 79.86 66.77
To
Growth)

27
 PBV (Price
To Book 10.49 6.89 7.02 7.35 6.12 6.72 5.37
Value)
PE (Price
To 0 77.02 78.19 88.16 102.24 40.73 43.4
earning)
PS (Price
to Sales - 11.3 9.25 8 7.26 6.75 5.71 5.21
Revenue)
Weight to
debt 0.1444 0.1801 0.1481 0.1183 0.0856 0.0581 0.0874
(WACC)
Weight of
equity 0.8556 0.8199 0.8519 0.8817 0.9144 0.9419 0.9126
(WACC)
WACC
(Weighted
0.1779 0.1676 0.1616 0.2082 0.2189 0.2112 0.2106
cost of
Capital)
PCFO
(Price to
cash Flow
81.92 0 0 258.23 730.51 40.25 52.95
from
Operations
)
Enterprise
19795.6 14765.4 13550 11902.4 10370.8 8656.25 6307.57
value

The above table shows the fluctuations in the risk, price and enterprise value of the company.

28
 7. DIVIDEND PAYOUT

Year Reported PAT Dividend payout Retention ratio

2017 -145.24 0 1
2016 157.3 0.3738 0.6262
2015 148.81 0.3951 0.6049
2014 119.69 0.4904 0.5096
2013 96.74 0.6067 0.3933
2012 201.56 0.276 0.724
2011 133.43 0.4165 0.5835
2010 80.93 0.5887 0.4113
2009 18.68 2.2107 -1.2107
2008 106.49 0.3673 0.6327

Observation:

The above table shows retention ratio of Godrej. That is from all the profits earned by the company
in a financial year, how much it has ploughed back into the company. From the data of the last 10
years it can be observed that except in 2017(the year in which Godrej incurred losses) Godrej has
paid dividend to its shareholders in each year.

Dividend payout
2.5

1.5

1 Dividend payout

0.5

0
2017 2016 2015 2014 2013 2012 2011 2010 2009 2008

The dividend paid were the highest in year 2009 despite the low profits earned equivalent to 18.68
cr.

29
 8. CONCLUSION

Indian Chemical industry only shares a mere 3% of the world chemical market. This 3%
contributes to the 13% of the country’s total exports and is on a continuous growth. The industry
has received a significant support from Government also which allowed 100% FDI in the sector.
As a result, USD 14.1 billion was received as Foreign Direct Investments between the periods of
2000 – 2017. Oleo chemical are mainly used in the manufacturing of personal care products,
detergents, soaps etc. Fatty acids dominates the segment of Oleo chemicals and Godrej Industries
is one of the major players in the segment. Godrej Industries is India’s leading oleo chemical
manufacturer.

The company showed significant growth in FY 2016-17 as its Profit before tax rose by
approximately 55% from the previous year. Also, the company’s revenue increased by nearly 12%
in FY 2016-17 as compared to FY 2015-16. Company has a stable share capital between 33-34
crore in last 5 years and more than 33 crore shares are issued in the present time, thus, the face
value of each share stands at INR 1. While, Godrej Industries Limited earns more revenue than its
near competitor TATA chemicals but it could only manage 3.41% profit of its revenue earned. It
may have happened either due to the less operation efficiency at GIL or maintenance cost to the
production plant or high operational costs in the year.

From DU PONT Analysis, it was observed that the net profit margin for the company has
drastically reduced from 4.14% in FY 2014-15 to just 1.05% in FY 2015-16. As shown in the
balance sheet, it can be observed that the company did invest in non-current assets and this could
be a potential reason in the falling of PATM. The acquisition of more assets proved to be a good
decision for the company as their asset turnover ratio improved in FY 2016-17 from the previous
FY 2015-16. The company has not been able to show a stable position in financing its assets and
business operations in the past decade with continuous changes in the graph. However, in the past
three financial years, the trend indicates a stable position of the company. In the latest FY, the
ROE decreased by almost 7%, the overall poor performance of monsoon affected the sales volume
of the company.

The company had been indulged more into debt as compared to equity to finance its assets. The
company had been financing its growth by the virtue of debt and thus vulnerable to magnified
loses also if magnified profits. The Return on Assets fluctuated highly in the past decade ranging

30
from the lowest at 1.32% to a highest at 9.05%. In the FY 2016, the ROA fall by more than 79%
as compared to FY 2015. The ROA was only 1.31% in that year, which is a very disinteresting
picture from the perspective of a potential investor. Also, with continuous poor ROA, company
was also vulnerable to the pulling out of the investments by the existing investors. The company
had only issued bonus shares once in their history. In the year 2015, company issued 106748 equity
shares of Re. 1 each.

The growth of company could also be seen from the increasing EPS which jumped from 5.6 in
2008 to 13.65 in 2017. With the growth of the company, the debt of Godrej also increase multifold.
Also, GIL has to pay the fixed rate of interest on the debt borrowed thus increasing the risk too.
The weight of debt had also increased over the years. It was 0.0493 in year 2008 and 0.1444 in
2017, thus, increasing by more than 192% in 10 years. Also, the weight of equity reduced from
0.9507 in 2008 to 0.8556 in 2017. It implied that GIL shifted its financing of assets, business from
equity to debt.

In FY 2016-17, due to the negative PAT which implied losses, GIL was not able to pay any
dividends to its equity shareholders. In all other years, company paid dividends to its equity
shareholders but it had been on decreasing trends from the year 2013. It can be due to the mid 2012
crisis in the global market.

By analyzing the past data, the future for Godrej Industries Limited seems bright and stable. Only
for one specific year, the company had incurred loss otherwise the company had been working
well above the industry’s average. The stock price had already crossed its industry competitors
thus attracting more investors and increasing its equity. With the favorable policies and support
from the government, the chemical industry is expected to grow at a faster rate. The demand for
products which includes oleo chemicals has also been on a rise and thus will benefit GIL which is
the largest manufacturer of the oleo chemical in India.

31
 9. LOG BOOK

Date Day Time Venue Topic Discussed Discussion

Made an
understanding of the
project, Company
Identification of the
identified – Godrej
29.01.20 12:30 - company
Monday C-11 Industries Limited by
18 1:30
checking the list of
mid-cap companies.
Discussions on Capital Discussed the basics
Structure of capital structure
Discussion about the
Discussed the course of
09.02.20 18:00 - Debt-to-Equity Ratio
Friday C-11 action and assigned roles
18 18:45 for Godrej Industries
and responsibilities.
Limited.
Discussion was
focused on FDIs
Discussed about the
,government
industry's growth and
11.02.20 18:00- schemes and
Sunday Machan possible economic
18 18:30 initiatives, factors
factors affecting the
affecting imports and
same.
exports of chemical
industry
Discussion was
focused on the
complete equity and
Discussion was
14.02.20 Wednesd 18:30- debt structure of the
Cafeteria narrowed down from
18 ay 19:15 company as well as
industry to company
major competitors
for the company
were discussed.

32
 Performance on the
basis of its
dependence on
How to ascertain the
16.02.20 18:30- financial leverage
Friday C-11 performance of the
18 19:30 and how much was
company
the return on equity
for past 10 years and
its significant change
discussion on how to Company's dividend
ascertain company's policy was
20.02.20 19:30- Conference
Tuesday capital structure via ascertained for the
18 20:00 call
analyzing dividend study of capital
policy structure
Every member was
asked to review the
23.02.20 16:00- Conference complete work and
Friday Review of work done
18 16:30 call suggest any
modification/additio
n required.
25.02.20 11:30- Conference Layout for conclusion Conclusion was
Sunday
18 11:45 call was discussed finalized
Compilation of work
WhatsApp was allotted to a
26.02.20 19:00-
Monday Group Compilation of work group member which
18 19:20
discussion was to be finished by
midnight.

33
 10. INDIVIDUAL CONTRIBUTION

NAME CONTRIBUTION

Chemical Industry in India – Introduction, size,

growth rate, market players, government schemes,
FDIs, imports and exports.
RISHABH MALHOTRA
Oleo Chemical industry in India – Introduction, size,
growth rate, companies in market, industry at global
scenario, imports and exports.
Godrej Industries Limited – Introduction, market
share, recent developments
Capital Structure - Source of capital for company
along with observations, Discussion about the debt &
PALLAVI SINGH equity of company and Comparative analysis with one
major competitor
Performance of company on the basis of After tax
SANJUKTA CHAKRABORTY & profit margin, Asset turnover ratio, asset to equity
RISHABH AGARWAL ratio, return on equity , Debt – Equity Ratio, Debt –
asset ratio & Bond share issuance (last 5 years)
Cost of Capital was ascertained depending on Cost of
SANDEEP BANSAL & RISHABH equity, cost of Debt, WACC calculation, Dividend
AGARWAL policy of the company (last 10 years) & Observations,
Policy changes at the company
RISHABH AGARWAL Conclusion: Current Performance, future estimates

34
 11. REFERENCES

Primary Source:

 Ace Equity
 Ace Analyzer
 Annual Reports
 Godrej Industries Limited – (www.godrej.com)

Secondary Source:

 https://blogs.siliconindia.com/indianspices/Business/How-Has-Been-the-Growth-of-
Chemical-Industry-in-India-bid-5VJ01D3p49163107.html
 http://www.economywatch.com/world-industries/chemical/india.html
 http://ficci.in/sector/7/Project_docs/Chemical-Petrochemical-sector.pdf
 https://www.croda.com/en-gb/products-and-markets/oleochemicals
https://tradingeconomics.com/india/imports-of-organic-chemicals
 https://economictimes.indiatimes.com/industry/indl-goods/svs/chem-/-
fertilisers/chemical-industry-will-grow-to-226-bn-by-2020-nirmala-
sitharaman/articleshow/57814944.cms

35
 12. ANNEXURES

A. BALANCE SHEET

DESCRIPTION Mar-17 Mar-16 Mar-15 Mar-14 Mar-13 Mar-12 Mar-11 Mar-10 Mar-09 Mar-08
Currency Rate 1 1 1 1 1 1 1 1 1 1
EQUITY AND LIABILITIES
Share Capital 33.61 33.6 33.59 33.12 33.52 31.76 31.76 31.76 31.9759 31.9759
Share Warrants & Outstandings 6.69 6.83 4.05 -130.64 7.11 6.45 0 0 0 0
Total Reserves 1575.12 1716.43 1620.64 1532.45 1583.49 1194.34 1058.38 990.93 995.1461 1026.445
Shareholder's Funds 1615.42 1756.86 1658.28 1434.93 1624.12 1232.55 1090.14 1022.69 1027.122 1058.421
Long-Term Borrowings 197.73
Secured Loans 0.01 204.19 232.8216 249.4807
Unsecured Loans 985.28 1016.8 1012.78 663.26 422.36 181.1 197.72 343.42 368.1431 186.1892
Deferred Tax Assets / Liabilities -2.65 -2.53 17.02 39.48 34.38 35.76 35.92 31.98 32.782 36.192
Other Long Term Liabilities
Long Term Trade Payables
Long Term Provisions 5.15 5.76 66.26 60.54 58.25 6.5 5.51
Total Non-Current Liabilities 987.78 1020.03 1096.06 763.28 514.99 223.36 239.16 579.59 633.7467 471.8619
Current Liabilities
Trade Payables 311.97 171.47 397.13 553.49 380.32 601.78 318.75 184.9 109.5348 215.5114
Other Current Liabilities 517.21 445.09 317.63 193.01 140.17 396.91 396.96 25.5 30.9194 30.0312
Short Term Borrowings 1437.41 1311.02 782.37 675.94 445.26 94.49 115.73
Short Term Provisions 4.83 5.04 77.26 73.05 74.47 68.99 69.43 86.04 77.9531 69.5534
Total Current Liabilities 2271.42 1932.62 1574.39 1495.49 1040.22 1162.17 900.87 296.44 218.4073 315.096
Total Liabilities 4874.62 4709.51 4328.73 3693.7 3179.33 2618.08 2230.17 1898.72 1879.276 1494.091
ASSETS
Non-Current Assets
Gross Block 1490.99 1214.52 1014.44 960.03 728.03 718.09 677.51 615.13 578.547 558.2244
Less: Accumulated Depreciation 90.72 42.19 366.64 345.4 406.65 386.59 363.34 338.82 314.6799 291.7375
Less: Impairment of Assets
Net Block 1400.27 1172.33 647.8 614.63 321.38 331.5 314.17 276.31 263.8671 266.4869
Lease Adjustment A/c
Capital Work in Progress 10.01 209.72 666.96 382 489.02 141.79 4.35 22.31 24.8413 4.9368
Intangible assets under development
Pre-operative Expenses pending
Assets in transit
Non Current Investments 2911.49 2623.02 2377.78 2048.26 1278.27 1349.83 1227.99 1147.63 1148.08 757.1843
Long Term Loans & Advances 44.22 38.87 110.92 119.06 147.5 113.51 129.55
Other Non Current Assets 0 0 0.1 0 4.3
Total Non-Current Assets 4365.99 4043.94 3803.56 3163.95 2236.17 1936.63 1680.36 1446.25 1436.789 1028.608
Current Assets Loans & Advances
Currents Investments 60.98 3.98 5.75 18.3
Inventories 296.62 265.56 166.34 232.17 138.25 199.83 185.09 134.77 93.5562 197.7119
Sundry Debtors 121.71 185.52 104.3 93.99 138.49 133.28 122.63 110.87 160.9998 156.4035
Cash and Bank 15.07 11.64 107.3 68.55 446.54 69.14 38.03 15.09 28.5117 294.2885
Other Current Assets 57 150.06 35.61 30.57 24.23 153.86 134.18
Short Term Loans and Advances 18.23 52.79 111.62 104.47 134.67 121.36 64.13 191.74 155.561 139.3877
Total Current Assets 508.63 665.57 525.17 529.75 943.16 681.45 549.81 452.47 438.6287 806.0916
Net Current Assets (Including Current Investments) -1762.79 -1267.05 -1049.22 -965.74 -97.06 -480.72 -351.06 156.03 220.2214 490.9956
Total Current Assets Excluding Current Investments 508.63 665.57 525.17 529.75 882.18 677.47 544.06 452.47 438.6287 787.7916
Miscellaneous Expenses not written off 3.8587 10.6789
Total Assets 4874.62 4709.51 4328.73 3693.7 3179.33 2618.08 2230.17 1898.72 1879.276 1494.091
Contingent Liabilities 162.47 156.39 214.62 131.59 102.86 89.85 89.89 77.55 98.3869 105.6327
Total Debt 2861.52 2658.34 2022.38 1415.9 926.21 506.73 554.34 547.61 600.9647 435.6699
Book Value 47.86462 52.08423 49.24769 47.26963 48.00984 38.27267 33.96253 31.79565 31.56014 32.24396
Adjusted Book Value 47.86462 52.08423 49.2477 47.2318 47.97147 38.24211 33.93535 31.7703 31.53487 32.21818

36
B. PROFIT AND LOSS

Year End Y201703 Y201603 Y201503 Y201403 Y201303 Y201203 Y201103 Y201003 Y200903 Y200803
No of Months 12 12 12 12 12 12 12 12 12 12
Gross Sales 8482.53 7549.3 9323.04 8008.17 7063.35 5688.22 4416.99 3458.02 3434.68 3024.99
Less: Excise 117.4 95.71 93.15 90.24 99.03 76.13 67.24 43.85 72.99 77.27
Net Sales 8365.13 7453.59 9229.89 7917.93 6964.32 5612.09 4349.75 3414.17 3361.69 2947.72
EXPENDITURE :
Increase/Decrease in Stock -88.92 -233.96 -1017.91 -569.88 -507.59 -1758.88 -309.11 -263.99 -150.94 -169.72
Raw Materials Consumed 5200.78 4137.23 8468.87 6859.77 6045.02 6149.31 3640.57 2946.99 2720.5 2235.78
Power & Fuel Cost 171.51 156.76 164.98 165.49 141.74 122.43 102.42 85.23 87.57 82.7
Employee Cost 429.21 364.86 322.52 294.24 269.75 258.95 218.91 169.14 136.31 162.86
Other Manufacturing Expenses 1329.54 2045.57 158.46 146.49 159.11 141.55 118.43 86.25 85.32 88.23
General and Administration Expenses 142.1 93.98 130.14 111.66 121.96 119.99 114.39 144.13 169.9 125.86
Selling and Distribution Expenses 208.78 219.77 324.86 296.62 244.09 186.1 145.26 127.68 129.24 111.88
Miscellaneous Expenses 333.5 278.85 192.56 169.18 116.86 127.07 94.98 77.65 110.47 112.51
Less: Pre-operative Expenses Capitalised 0 0 0 0 0 0 0 0 0 0
Total Expenditure 7726.5 7063.06 8744.48 7473.57 6590.94 5346.52 4125.85 3373.08 3288.39 2750.08
PBIDT (Excl OI) 638.63 390.53 485.41 444.36 373.38 265.57 223.9 41.09 73.3 197.64
Other Income 175.84 207.58 125.93 142.3 56.82 97.94 173.49 200.54 163.75 163.76
Operating Profit 814.47 598.11 611.34 586.66 430.2 363.51 397.39 241.63 237.05 361.39
Interest 399.52 343.04 191.73 118.88 110.34 110.83 87.93 84.13 148.65 100
PBDT 414.95 255.07 419.61 467.78 319.86 252.68 309.46 157.5 88.4 261.39
Depreciation 148.14 117.21 93.23 70.44 59.45 56.35 55.06 50.17 47.03 51.41
Profit Before Taxation & Exceptional Items 266.81 137.86 326.38 397.34 260.41 196.33 254.4 107.33 41.37 209.98
Exceptional Income / Expenses 22.76 48.74 192.41 69.38 165.41 93.83 68.31 105.64 89.7 0
Profit Before Tax 289.57 186.6 518.79 466.72 425.82 290.16 322.71 212.97 131.07 209.98
Provision for Tax 167.41 108.69 136.55 171.2 134.21 94.9 73.14 44.77 53.37 69.29
PAT 122.16 77.91 382.24 295.52 291.61 195.26 249.57 168.2 77.7 140.69
Extra items 0 0 0 0 0 0 0 0 21.22 38.25
Minority Interest -202.37 -162.22 -186.35 -143 -76.24 -60.25 -67.4 -45.99 -22.82 -12.27
Appropriations 1651.67 1587.99 1511.11 1531.87 1305.23 976.09 807.07 598.02 477.2 431.74
Dividend(%) 175 175 175 175 175 175 175 150 125 125
EPS 7.63 4.78 11.98 9.85 11.67 9.18 9.24 6.4 2.85 4.05
Adjusted EPS 7.63 4.78 11.98 9.85 11.66 9.17 9.23 6.39 2.85 4.05

37
C. KEY RATIOS:

20170 20160 20150 20140 20130 2012 2011 2010 2009 2008
Year End 3 3 3 3 3 03 03 03 03 03

Key Ratios

Debt to Equity 1.78 1.52 1.22 0.9 0.58 0.42 0.51 0.54 0.6 0.42

Current Ratio 0.22 0.34 0.33 0.35 0.91 0.59 0.61 1.53 2.01 2.56

ROCE 1.41 5.15 8.58 8.15 7.58 16.16 12.48 8.87 4.88 12.64

RONW -8.65 2.01 9.24 7.54 6.85 17.57 12.78 8.02 1.83 15.13

PBIDTM (%) 7.17 8.51 7.06 9.08 8.1 13.6 12.8 7.52 3.24 21.54

PATM (%) -9.07 2.45 9.61 7.75 6.2 13.35 11.36 9.45 2.14 13.38

CPM (%) -5.79 5.64 11.46 9.35 7.68 15.15 13.81 12.77 5.16 16.58

Market Cues
Price (Unit. 354.4 294.7 258.3 181.5 140.1 259.1
Curr.) 504.5 5 345.4 314.9 6 4 5 9 52.56 4
Market 16956 11909 11601 10437 9888. 8211. 5770. 4455. 1681. 8292.
Capitalization .25 .52 .99 .77 4 55 79 93 93 95

EPS -4.32 1.02 4.43 3.61 2.88 6.34 4.2 2.55 0.58 3.33
Price / Book
Value 10.54 6.81 7.01 6.66 6.14 6.75 5.35 4.41 1.67 8.04

CEPS -2.76 2.34 5.28 4.36 3.58 7.2 5.11 3.44 1.41 4.13
Equity
Dividend % 175 175 175 175 175 175 175 150 125 125
Enterprise 19802 14556 13517 11785 10368 8649. 6287. 4988. 2254. 8434.
Value .7 .22 .07 .12 .07 14 1 45 39 33
Dividend Yield
% 0.35 0.49 0.51 0.56 0.59 0.68 0.96 1.07 2.38 0.48

38
D. COMPANY vs INDUSTRY

Company Industry % to Ind Agg Company Industry % to Ind Agg Company Industry % to Ind Agg
Mar-17 2017 Mar-16 2016 Mar-15 2015

No of Companies 212 469 487

Financials
Net Sales 15000.9 686723.81 2.18 13029.5 1194504.03 1.09 14546.4 1237006.04 1.18
Total Income 15469.7 696968.21 2.22 13284.2 1213315.73 1.09 14912.6 1256060.92 1.19
Total Expenditure 14320.3 587686.29 2.44 12097.6 1086680.73 1.11 13819.4 1124498.09 1.23
PBIDT 1149.4 109281.92 1.05 1186.6 126635.01 0.94 1093.2 131562.83 0.83
PBIT 625.1 77582.76 0.81 2085 90651.12 2.3 2803.4 105287.11 2.66
PBT -1453.5 47937.78 -3.03 82.6 53993.13 0.15 1321.7 69704.71 1.9
PAT -1452.4 32990.34 -4.4 342.1 23979.54 1.43 1488.1 48388.06 3.08
Cash Profit -928.1 61128.68 -1.52 785.8 63625.01 1.24 1774 82321.33 2.15
Total Debt 28615.2 534731.61 5.35 26583.4 630396.63 4.22 20223.8 555735.02 3.64
Gross Block 14909.9 753950.51 1.98 12145.2 762735.62 1.59 10144.4 717080.74 1.41
Net Current Assets -17627.9 -35736.97 -12670.5 2053.67 -616.97 -10492.2 36520.57 -28.73
Total Assets 48746.2 1241580.94 3.93 47095.1 1605581.18 2.93 43287.3 1468347.8 2.95

Key Ratios

Margin Ratios
Core EBITDA Margin(%) 4.25 13.24 0.17 6.69 8.36 0.1 4.7 8.44 0.09
EBIT Margin(%) 3.9 10.37 0.09 14.96 7.06 0.17 18.11 7.9 0.23
Pre Tax Margin(%) -9.07 6.41 -0.21 0.59 4.21 0.01 8.54 5.23 0.11
PAT Margin (%) -9.07 4.41 -0.21 2.45 1.87 0.03 9.61 3.63 0.12

Performance Ratios
ROA(%) -3.03 4.15 0.76 2.51 3.71 5.61
ROE(%) -8.65 7.47 2.01 4.39 9.24 9.95
ROCE(%) 1.41 15.19 5.15 15.4 8.58 19.93
Asset Turnover(x) 0.33 0.94 0.31 1.34 0.39 1.55
Sales/Fixed Asset(x) 1.18 1.18 1.25 1.71 1.57 1.91
Working Capital/Sales(x) -0.91 -12.43 -1.1 -41.26 -1.48 106.99

Efficiency Ratios
Fixed Capital/Sales(x) 0.84 0.85 0.8 0.58 0.64 0.52
Receivable days 35 57.8 37.95 55.3 23.38 52.91
Inventory Days 64.04 55.22 56.55 52.37 46.99 49.66
Payable days 61.39 57.07 49.81 63.7 60.21 60.04

Growth Ratio
Net Sales Growth(%) 15.13 0.47 -10.43 -1.52 0.07 2.47
Core EBITDA Growth(%) -3.14 15.05 8.54 0.1 -21.98 4.7
EBIT Growth(%) -70.02 5.38 -25.63 -17.39 27.59 19.53
PAT Growth(%) -524.55 6.86 -77.01 -53.93 24.33 34.42

Financial Stability Ratios

Total Debt/Equity(%) 1.78 0.72 1.52 0.65 1.22 0.69
Current Ratio(x) 0.22 0.88 0.34 0.98 0.33 1.15
Quick Ratio(x) 0.09 0.55 0.21 0.64 0.23 0.79
Interest Cover(x) 0.3 2.62 1.04 2.48 1.89 2.96

39