InvestorQ : How does Godrej Industries look after the latest quarter results for the period ending September 2020?
Lavanya Subramanian made post

How does Godrej Industries look after the latest quarter results for the period ending September 2020?

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Anamika Sodhani answered.
3 weeks ago
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Godrej Industries saw 9.22% lower Sep-20 quarter sales revenues at Rs.2386 crore. It may be remembered that Godrej is a diversified company spread across dairy, food and chemicals. Despite the pandemic, Godrej Industries did show a sharp bounce from June levels to recoup pre-COVID sales figures; substantially if not entirely.

Operating profits for the Sep-20 quarter were down 22.1% at Rs.73 crore leading to operating margins or OPM dropping from 3.56% in the Sep-19 quarter to 3.06% in the Sep-20 quarter. This was largely on account of the breakeven gap on lower sales.

PAT for Sep-20 quarter was up by just about 19.6% at Rs.205 crore from continuing operation and the exceptional gain on discontinued operations is not considered. As a consequence the PAT margins expanded marginally from 16.91% to 17.13% in Q2.

It is essential understand a bit more about the discontinued operations of Godrej Industries. During the Sep-19 quarter, Godrej Industries logged a one-time exceptional gain of Rs.201 crore arising from the sale of its holding in Godrej Nature’s Basket to Spencer Retail of the Goenka Group.

Since this gain refers to discontinued operations of Godrej Industries, the same has not been considered. As a result, the gain of Rs.201 crore in Sep-19 quarter has been ignored for analysis purposes, else the profit growth in the latest quarter would have bene negative.

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