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Analyst Meet / AGM - Analyst Meet

Godrej Properties is likely to give push to growth of GIL in coming years

Godrej Industries

13-Jun-2013, 02:35
Godrej Industries (GIL) held an analyst meet to discuss the quarter and year ended March 2013 result.

Highlights

The consolidated net sales for Q4 FY13 have increased by 2% to Rs 1457.54 crore due to 18% growth in animal feeds business and 15% growth in other business. Rest of the segments have shown de-growth. OPM inclined by 450 bps to 7.2%. The net profit has increased by 119% to Rs 93.67 crore due to rise in margin

The consolidated net sales for FY13 grew by 24% to Rs 6964.32 crore on back of 33% growth in animal feeds business, 34% in vegetable oil business, 25% in estate & property development and 27% in finance & Investment business. OPM has increased by 70 bps to 5.4%. %. The net profit has increased by 34% to Rs 391.18 crore.

Godrej Consumer Products

The net sales for Q4 up by 30% to Rs 1716 crore and net profit by 73% to Rs 334 crore. Domestic sales grew by 18%. Household insecticides grew by 26%, soap business grew by 17% and Hair care by 27%. International business organic net sales grew 23%.

Chemical Division

For Q4, the revenue stood at Rs 329 crore, down by 1.5%. The PBIT declined by 43% to Rs 21 crore. Export was Rs 141 crore,

For FY13, the revenue stood at Rs1324 crore, up by 3%. PBIT was down by 45% to Rs 66 crore. 39% revenue came from export.

The new manufacturing facility at Ambernath is progressing well and is on schedule. It is expected to be operational in Q3 FY14. The company will manufacture surfactants and fatty acid at Ambernath plant and not fatty alcohols. The capex for Ambernath plant was Rs 300 crore.

Going forward, the company will expand product portfolio with adjacencies to current offering like alcohol based derivatives

Also going forward, the company will leverage competitive advantage India has in Rapeseed oil by increase in share of high margin derivatives of rapeseed oil in the value added portfolio

Godrej Properties Limited (GPL)

For Q4, the consolidated sales stood at Rs 314 crore, down 16% while Net profit was up 34% at Rs 53 crore.

For FY13, consolidated sales stood at Rs 1048 crore, up 28% while Net profit was up 41% at Rs 138 crore.

There was delay in project launch in FY13. Only 70% of launches materialized as planned.

Around Rs 1500 crore has been locked in 4 commercial projects in Kolkatta, Chandigarh and Mumbai, which mgmt want to reduce substantially in FY14.

Godrej Properties Limited has launched flagship commercial project at Godrej BKC, Bandra-Kurla Complex, Mumbai. It has sustained new deal momentum with 3 new projects with 2.3 mn. sq.ft. of saleable area in Q4. It has added a second redevelopment project at Sahakar Nagar, Chembur with 0.75 mn. sq. ft. saleable area. It has entered a joint venture agreement for 1.5 million sq. ft. saleable area at Undri, Pune. Redevelopment project with approx. 95,000 sq. ft. saleable area in Malad, Mumbai.

Four new project launches were also executed in the quarter in Ahmadabad, Kolkata and Mumbai, including commercial project at Godrej-BKC in Mumbai.

There was 40% price hike in one year in Godrej Platinum, Vikhroli, despite poor market condition.

34 acres mixed development project, The Trees, at Vikhroli being developed by Godrej Vikhroli Properties LLP (GVPL), which will have saleable area of 3.5 mn sq.ft. and has 60:40 JV between GPL and GIL on profit sharing basis. GIL will benefit to tune of 77% from it though its 61.5% stake in GPL and 40% profit share in JV. 1^st building, Godrej One will be competed in FY14.

The company also approved a rights issue to its existing shareholders of up to Rs 700 crore in the next quarter to fund its growth plans

Godrej Agrovet Limited (GAVL)

For Q4, Sales increased by 15% to Rs 672 crore while PBIT grew by 25% to Rs 21 crore

For FY13, Sales increased by 26% to Rs 3101 crore while PBIT grew by 22% to Rs 155 crore. The Operating Profit increased by 22% despite tough market conditions and weak monsoon.

The external environment continues to impact Godrej Tyson and ACI Godrej performance.

Going forward, the mgmt expects robust growth from agri input business and palm oil business.

Animal Feed

In Q4 FY13, Sales increased by 18% to Rs 553 crore.

In FY13, Sales increased by 33% to Rs 2323 crore, primarily due to 31% growth in aqua feed volume and 10% growth in cattle feed volume. The company has produced ~1.05 million MT of animal feed. Feed volumes increased by 3% despite drop in milk prices and lower broiler placements.

The new feed mill capacities commenced operations across India.

ACI Godrej (Bangladesh)

In Q4 FY13, Sales increased by 9% to Rs 81 crore.

In FY13, Sales decreased by 4% to Rs 331 crore primarily due to bird flu in Bangladesh. Bird flu situation has improved in Q4. However, external environment continues to be volatile. There was a strong growth in aqua feed volumes in FY13.

Oil Palm Plantation

In Q4 FY13, Sales increased by 4% to Rs 24 crore.

In FY13, Sales increased by 23% to Rs 275 crore despite lower oil prices due to 19% increase in Fresh Fruit Bunches (FFB) tonnage.

The new oil mill at Chintampalli, Andhra Pradesh commenced operations and further expansion in progress

Over 6,800 new hectares of oil palm plantations cultivated in FY13. Total area coverage is ~ 45,000 hectares.

Agri Inputs Business

In Q4 FY13, Sales increased by 11% to Rs 30 crore.

In FY13, Sales increased by 17% to Rs 243 crore despite a weak monsoon impacting the overall agrochemicals industry. HBR sales volumes increased by 49%. Zymegold granules volumes have grown by 104%

Godrej Tyson

In Q4 FY13, Sales increased by 35% to Rs 89 crore.

In FY13, Sales increased by 20% to Rs 319 crore. Business impacted by higher feed costs due to rise in price of corn and soya.

Yummiez sales volume grew by 12%. Sales volumes to Quick Service Restaurants increased by 18%

NATURE'S BASKET

The revenue grew by 49% to Rs 35 crore in Q4 FY13 and grew by 56% to Rs 128 crore in FY13.

Overall 2500 new products introduced during FY13, taking up contribution from new products to 9% of sales.

2 new stores added in Q4, one each in Mumbai and in New Delhi. There are total 27 stores across 6 key metros

Godrej Seeds

The net sales stood at Rs 19 crore.

Current sales volume mix is 71% maize, 14% SSG, 9% paddy and 6% other.

It is looking to enter new geographies in next Kharif season

It has strengthened sales channel through appointment of additional distributors.

The company is launching R&D programs for bajra, pigeon pea and specialty maize