InvestorQ : How do you see the third quarter numbers of Godrej Industries?
Arti Chavan made post

How do you see the third quarter numbers of Godrej Industries?

Rutuja Nigam answered.
3 months ago

It was a good set of numbers by Godrej Industries in a tough quarter as the Q3 PAT moved up 16.6% to Rs.132 crore on the back of higher share of profits from associate companies that the holding company is invested in. However, Godrej Industries reported 12.6% fall in gross revenues for Dec-20 quarter at Rs.2,357 crore on property business stress.

Overall, in terms of business verticals, the experience of Godrej Industries was relatively mixed. Just to explain, chemicals, vegetable oils and crop protection products did better in the Dec-20 quarter on a yoy comparison. However, animal feeds business and real estate development business saw deep cuts in revenues, which was along expected lines.

Operating profits for the Dec-20 quarter were sharply down 69% at Rs.30.79 crore. On the one hand, the raw material cost did come down but the group also took a perceptible hit on sharply higher cost of property development. As a result, the operating profit margins or the OPM tapered from 3.69% in Dec-19 to 1.31% in Dec-20 quarter.

Coming to the bottom line, the PAT on a consolidated basis for Dec-20 quarter was up 16.59% at Rs.132 crore despite pressures at operating level. That is because, Godrej gained from deriving a higher share of profits from associate and joint venture companies and that propped up earnings of the group holding company. PAT margins expanded from 4.20% in Dec-19 to 5.60% in the Dec-20 quarter.