q4 prstn - 2007-08 ( 280508) final (2).ppt [read-only]...godrej industries limited fy 2007-08...

Godrej Industries LimitedFY 2007-08 Performance Update 1/28

Performance Update

FY 2007- 0828th May 2008

Industries Limited


Contents

• Performance Highlights

• Share price trend and shareholder wealth creation

• Corporate and Business Highlights

• Investments

• Performance highlights – Subsidiaries, JVs and Associates

• Key Financials

Godrej Industries LimitedFY 2007-08 Performance Update

Amts in Amts in RsRs. . CroreCrore

Highlights FY 2007-08

FY07-08

∆ FY06-07

Total Income 3006 25% 2412

Total Expenses 2750 2283

PBDIT 256 97% 130

PBT * 210 76

PAT 168 185% 59

EPS** (Rs.) 5.6 175% 2.0

* Including exceptional items but excl. prior period and extraordinary items

** FY 2007-08 EPS calculated including 2,79,06,950 equity shares issued to QIBs in Nov. 2007

(Consolidated)(Consolidated)

3/28


Amts in Amts in RsRs. . CroreCrore

Highlights FY 2007-08

* Including exceptional items but excl. prior period and extraordinary items

** FY 2007-08 EPS calculated including 2,79,06,950 equity shares issued to QIBs in Nov. 2007

FY07-08

∆ FY 06-07

Total Income 788 8% 730Total Expenses 671 641

PBDIT 117 32% 89

PBT * 108 35% 80

Net profit 109 39% 78

EPS** (Rs.) 3.6 35% 2.7

(Standalone)(Standalone)


-

1,000

2,000

3,000

4,000

5,000

6,000

IND

EXED

PR

ICE

(RS.

)

Months

GIL SHARE PRICE TREND V/S. BSE SENSEX

GIL CL. PRICESENSEX

5/28

Share Price TrendShare Price Trend

• Both BSE Sensex and GIL share price are indexed to 100 at the beginning of the Financial Year 2004.

GIL

BSE Sensex


GIL – Shareholder Wealth Creation• Godrej Industries has been ranked 9th Fastest Wealth Creator with

CAGR of 127% and 65th Biggest Wealth Creator for having added

over Rs. 4600 crore to its market capitalisation for the period 2002-

2007 as per the 12th Annual Wealth Creation study report by

Motilal Oswal Securities.

• Godrej Industries ranked Fourth in delivering the greatest Total

Shareholder Returns (TSR) (146% per annum) for the period 2002-

07 in the large cap-segment, in a survey published by

Businessworld in June 2007.


Godrej’s New Brand Identity InitiativeGroup marketing and branding strategy to enhance strategic focus on Consumers and BrandsGodrej worked with Interbrand, world’s leading branding consultants, to study Godrej brands across employees, consumers, investors and business partners and redefine its approach to harnessing the brand’s intrinsic strengths

• New Corporate identity unveiled recently. Each Godrej color connotes:

• Green : Growth, harmony with nature and renewed life

• Blue : Big ideas, blue sky thinking, technology and innovation

• Ruby : Passion, indulgence, energy and dynamism

• Creating a contemporary and aspirational lifestyle brand by repositioning the Master Brand around the promise of BRIGHTER LIVING

• The initial phase of the initiative will build the Godrej Master Brand in tandem with the four businesses of personal grooming, furniture, property and aerospace

7/28


QIP issue placed successfullyGIL QIP issue successfully placed with Qualified Institutional Buyers

in Nov., 2007

• 279.07 lac equity shares of Re.1/- issued at a premium of Rs. 214

per share raising Rs. 600 crore. Share priced at 9% premium over

the floor price of Rs. 197/- per share calculated in accordance

with SEBI guidelines.

• Purpose : for strategic initiatives, investments, repayment of

loans, and general corporate purposes including acquisitions,

capital expenditure and working capital needs.


Other Highlights

• Sold the Medical Diagnostics division as a going concern to RFCLLimited, one of the leading Life sciences and Laboratory Solutions company, at the close of business hours of 31st December 2007.

• ICRA has assigned credit ratings for CP, Lines of Credit (LOC) as under:

• Commercial Paper : A1+

• Short Term LOC : A1+

• Long Term LOC : LAA Short term and long term LOC ratings indicate high-credit-quality carrying low credit risk.


Corporate Social Responsibility

• GIL is participating in community health and education with thelaunch of “Table for Two”

• “Table for Two” is a Global initiative launched by Young Global Leaders in partnership with the World Economic Forum to address hunger in developing countries and life-style related diseases in the developed world.

• GIL’s contribution to this initiative would help providing nutritiousfood to children in Indian schools & to poor in developing countries.

• “ACT 07” an initiative to create awareness and education about HIV/AIDS spearheaded by Ms. Parmeshwar Godrej under Heroes Project.


GIL

CHEMICALS VEGOILS ESTATE FINANCE &INVESTMENTS

100% 839cr.

OTHERS

Businesses - FY (2007-08) Revenue

83%

692 cr.

1%

7 cr.

3%

30 cr.

12%

98 cr.

1%

12 cr.


Business Highlights

Chemicals• Market leader in India in Oleo-chemicals and Surfactants

• Revenue growth of 21% (FY 2007 – 08 : Rs. 692 cr; FY 2006 – 07 : Rs. 572 cr )

• PBIT growth of 1267% for FY (FY 2007 – 08 : Rs. 82cr ; FY 2006 – 07 – Rs. 6 cr )

• Export turnover crossed the landmark of Rs. 300 crore

– 43% of division’s turnover

– export sales grew 50% in FY 2007-08

– exporting to more than 60 countries

• ‘Exporter of the year’ in the chemicals category of ‘International Trade Award 2008’ and awarded by CNBC-TV18 and DHL for the second time in succession.

• Forward integration to high value added surfactants during the year.

• Operational efficiency improvement initiative “Parivartan” at Valia factory yielding good results.


Break-up of Sales – FY - 2007-08

Surfactants

(9%)

Fatty Alcohol(49%)

Fatty Acids(35%)

Glycerin(7% )

Chemicals - Rs. 692cr.


Investments as on 31.3.2008Company Business At Cost

(Rs. Cr.)%

HoldingGodrej Consumer Products Ltd.

FMCG personal and household care products

92.2 10.2%

Godrej Agrovet Ltd. Animal Feeds, Agri Inputs, Poultry, oil palm & rural retailing

163.8 75.2%

Godrej Properties Ltd. Real Estate & Property Dev. 187.9 81.4%Godrej Sara Lee Ltd. Household Insecticides 47.3 20.0%Godrej Hershey Ltd. Foods & Beverages 143.0 43.0%Godrej International Ltd. International Trading 16.5 100.0%CBay / Compass/ Avesthagen, etc.

BPO , Biotech 89.3

Total 775.5


Performance Highlightsmajor Subsidiaries, JVs and Associates


Godrej Consumer Products( FMCG – personal and household care)

• Consolidated sales revenue higher by 12% at Rs. 272 cr. in Q4 2007-08. • Q4 2007-08 PBDIT up by 30% at Rs. 56.6 cr.• PAT increased by 33% to Rs. 40.8 crore in Q4 2007-08• EPS (annualised) – Rs. 7.2 in Q4 2007-08• Final Dividend – 75% taking the total dividend payout at 400%• Continues to be second largest toilet soap manufacturer in India.• Acquired ‘Kinky’ hair business in South Africa (Kinky sells variety of products – hair, hair

braids, hair pieces, wigs, wefted pieces along with accessories styling gels and hair sprays and oil free shampoo).

• Acquired ‘Godrej Global Mideast FZE’ – 100% subsidiary of Godrej International Ltd.• Relaunched Powder Hair Dye as Godrej Expert Hair Dye• Cinthol brand relaunched “24 hour confidence” with new graphics and new range of soaps,

talcs and deodorants.• Godrej Ezee the only premium brand to be awarded Super Brand status.• Fairglow continues to be largest selling fairness soap in India


Godrej Consumer Products… contd..• Consolidated sales grew by 16% in FY 2007-08 to Rs. 1102.6cr.• FY 2007-08 PBDIT higher by 20% at Rs. 218.5 cr.• PAT at Rs. 159.2 crore up by 19% in FY 2007-08.• EPS ( annualised) – Rs.7.0 in FY 2007-08.

• New Products launched during the year : • New variant Papaya and Lotus under Godrej No.1 Brand.

• Renew Powder Hair Colours – a new offering under Renew brand.

• Godrej SCA Hygiene launched “Libero” baby diapers, and “Tena” incontinent diapers and “ Libresse” Sanitary Napkin across India

• Godrej SCA Hygiene relaunched “Snuggy Dry” Baby Diapers in Kerala and Tamil Nadu – a unique absorption formula and a cloth like feel.


Godrej Agrovet(Animal Feeds, Agri Inputs, Poultry, oil palm & rural retailing)

• Standalone FY 2007-08 revenue growth of 19%

• Twenty Six new rural retailing “Aadhaar” stores opened in FY 2007-08 (65 outlets operational till date). Aadhaar stores retail agri products, food & grocery items, FMCG products, consumer durables, apparels, etc.– “Chak De – Jeet Le” promo campaign launched in October with Strategic

partners like Tata Motors, TVS & Nokia.

– First Petro Format Aadhaar Express Store opened in Gujarat.

– Second Petro Format Aadhaar Express outlet with BPCL opened in Kashti(Maharashtra)

– Branded ‘Shop-in-shops’ added (e.g. Grasim, Welspun, Shemaroo, Nilkamal).

– Strategic tie-up with Reliance General Insurance Co. Ltd. for promoting insurance products in Aadhaar.


Godrej Agrovet…..contd..• Eight Nature’s Basket outlets till date in Mumbai. Nature’s basket retails

fresh fruits, vegetables & herbs, gourmet foods, etc.

– Lokhandwala & World Trade Centre stores revamped and positioned as Authentic World Foodoutlets in Nov 2007 – new categories introduced: imported wine, cheese, cold-cuts, processed food, etc.

– Warden Road store remodeled to include wide range of gourmet food.

– Wine tasting sessions were held in new format stores which, clubbed with well stocked cellars, led to increase in revenue.

• Yummiez has opened 18 new kiosk in shopping malls, multiplexes to increase awareness among the target customers.

• In March 2008, 70% of Godrej Agrovet’s stake in Aadhaar Retailing Limited was sold to Future Ventures

– Expected to result in a stronger rural retailing business by combining Future Ventures' retailing expertise with Godrej Agrovet's experience in rural marketing

• Acquired 51% in Cauvery Palm Oil Limited in Mar 2008

- strengthens Oil Palm business and gives access in the state of Tamil Nadu.

•


Godrej Properties(Real Estate & Property Development)

Godrej Properties is in the process of filing a Draft Red Herring Prospectus with SEBI to take forward its plan for an IPO in the near future.

In view of regulatory restrictions, no business / financial performance updates can be provided at this time.


Godrej Sara Lee (Household Insecticides, Hair care, Air care, Shoe care & Surface care)

• Major Brands - Goodknight, Jet and Hit under household insecticides, Ambi Pur range in Air Care segment, Brylcreem under Hair Care segment, Kiwi under Shoe Care, Kiwi Kleen under Surface Care.

• Launched Ambipur Aromatherapy, car perfume range in air care brand.

• During the year Acquired household and body care business of Sara Lee in India and Sri Lanka.

• New identity unveiled for Good Knight brand with advanced packaging.

• Market leader in Household Insecticides.• FY 2007-08 – consolidated revenue growth of 26%• FY 2007-08 – consolidated PAT growth of 34%• Cost re engineering and focused efforts behind improved realizations have yielded good

results in terms of profitability.


Godrej Global Solutions (Infobiz solutions)

• Key Domains: Healthcare, Finance & Accounts

• Indian operations at Chennai and Navi Mumbai

• Share sale agreement inked with Tricom India Limited in May 2008

- benefit of synergies with similar areas of business

- help grow the business faster and service the clients more efficiently


Godrej Hershey Limited(Foods, Beverages, confectionery businesses)

• Products sold under brands Jumpin, Sofit, Xs, Cooklite, Godrej Tea & under Nutrineconfectionery brand like Mahalacto, Aasay, Superstar, Aamras, Gulkand

• Sofit sales grew by 51%

• Xs Beverages sales increased by 23%

• Forayed into Milk Food Drinks (MFD) category by rolling out the first made in India Hershey innovation, Hershey’s Nourishing Milkmix in Tamil Nadu. Hershey’s Milkmix is a fortified chocolate syrup in easy-to-squeeze bottles and makes great tasting hot chocolate mix.

• New initiatives/products launched during the year– ramped up the sales of new candy Super Mahalacto by media campaign and

distribution drives.– launched new variant of Nutrine eclairs– special packs launched for candy and beverages segment during festive season.


Key Financials


Summarised Profit & Loss Account(Consolidated)

FYFY0707--0808 ∆ FYFY

0606--0707

Total Income 3006 25% 2412

Expenditure 2750 2283

PBDIT 256 97% 130

Depreciation 51 42

Interest 71 65

PBT* 210 176% 76

PAT 168 185% 59

* Including exceptional items but excluding prior period & extraordinary items.

Amounts in Rs. Crore


Balance Sheet(Consolidated)

Liabilities Assets31-03-08 31-03-07 31-03-08 31.03.07

Capital 131 60 Net Fixed Assets 1055 789

Reserves 1323 427 Investments 218 194

Debt 1050 914 Net Current Assets 918 380

Def. Tax Liability 52 51 Cash & Bank bals. 365 89

Total 2556 1452 Total 2556 1452

Amounts in Rs. Crore

Capital includes Minority Interest

Net Fixed Assets includes Goodwill on Consolidation


Key Ratios(Consolidated)

* On Average Capital Employed

** Incl. exceptional items but excl. prior period and extraordinary items

FY 07-08

FY06-07

PBDIT / Income 8.5% 5.4%

PBT **/ Income 7.0% 3.2%

PAT / Income 5.6% 2.4%

ROCE* 29.0% 16.4%


Thank You

Some of the statements in this communication may be 'forward looking statements' within the meaning of applicable laws and regulations. Actual results might differ substantially or materially from those expressed or implied. Important developments that could affect the Company's operations include changes in industry structure, significant changes in political and economic environment in India and overseas, tax laws, import duties, litigation and labourrelations.

q4 prstn - 2007-08 ( 280508) final (2).ppt [read-only]...godrej industries limited fy 2007-08...

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