4 January 2018
A
nnual
R
eport
T
hreadbare
GCPL’s FY17 annual report analysis highlights subdued organic revenue
growth of 4% to INR91b and PBT growth of 7% to INR16b. The muted
performance can be primarily attributed to subsidiaries, which reported
revenue growth (adjusted for acquisitions) of mere 3% and PBT decline
of 11%. Subsidiaries in Indonesia, the UK and Africa (Darling) continued
delivering a healthy performance. Other subsidiaries lacked momentum,
which, coupled with high working capital requirements at subsidiaries,
led to significantly lower consolidated return ratios (ROCE of 17% and
ROE of 27%) compared to standalone return ratios (ex-investment in
subsidiaries: ROCE of 62% and ROE of 63%). Cash conversion cycle for
the consolidated entity improved to 19 days (FY16:31 days), primarily
driven by the standalone operations (improved to -59 days v/s -40 days
in FY16). This led to a healthy improvement in OCF to 18.3b (FY16:
INR8.7b). FCF post interest stood at INR0.7b (FY16: INR-1.3b), primarily
on account of the SON and Canon Chemicals acquisitions, which led to
an increase in intangibles to INR71b (135% of NW).
GODREJ CONSUMER PRODUCTS FY17
The
ART
of annual report analysis
Organic revenue growth
remains subdued at 4%
and PBT growth of 7%
Weak subsidiary
performance coupled
with high WC
requirements dragged
Return ratios.
Both debt and cash rises, of which debt being
USD denominated is subject to forex risk.
Stock Info
Bloomberg
Equity Shares (m)
M. Cap. (INR b)/(USD b)
52-Week Range (INR)
1,6,12 Rel Perf. (%)
CMP (INR)
Avg Val, INRm
Free float (%)
GCPL IN
681.0
667 / 11
1084 / 749
-2 / -8 / 2
980
570
36.8
Jun-17
63.3
2.2
28.0
6.6
Sep-16
63.3
1.7
29.0
6.1
Subsidiaries drag superior return ratios of standalone
business:
Consolidated return ratios (ROCE of 17% and ROE of 27%)
are significantly lower than the standalone return ratios (ex-
investment in subsidiaries- ROCE of 62%; ROE of 63%). This, in our
view, is primarily on account of the relatively weak performance and
the high capital intensity (working capital requirements) of
subsidiaries.
Shareholding pattern (%)
Promoter
DII
FII
Others
Sep-17
63.3
2.2
27.8
6.7
Acquisitions drive earnings growth for subsidiaries:
Organic
consolidated revenue grew 4% (v/s total 10% growth) and PBT grew
6% (v/s total 12%). Organic revenue growth in constant currency
terms was 6%. This was primarily dragged by subsidiaries, which
reported (adjusted for acquisitions) revenue growth of mere 4% and
a PBT decline of 11%. Africa (Darling), the UK and Indonesian
subsidiaries exhibited a healthy performance, though.
Note: FII Includes depository receipts
Stock Performance (1-year)
Earnings to cash flow conversion robust at 117%:
Cash flow
from operations (CFO) increased to INR18.1b due to release of
working capital of INR3.6b v/s additional working capital requirement
of INR4.6b in FY16. Lower working capital was led by an
improvement in the cash conversion cycle to 19 days (FY16: 31 days),
as payable days increased to 142 (FY16: 121 days).
Intangibles rise on new acquisitions:
Intangibles increased to
INR71b, 135% of net worth (FY16: INR51b, 119% of net worth),
mainly on account of acquisitions during the year.
Auditor’s name
Kalyaniwalla & Mistry LLP
Debt and cash & investments rise:
Cash & investments increased
to INR18b, 34% of net worth (FY16: INR8b, 19% of net worth). Debt
rose by INR11b to INR40b (FY16: INR29b), which was taken at
subsidiary level
. Al
though there is a positive carry on interest rates
and yield on cash & investment, we highlight debt which is USD
denominated is subject to forex risk.
Research analyst
Sandeep Ashok Gupta
(S.Gupta@MotilalOswal.com); +91 22 39825544
Somil Shah
(Somil.Shah@MotilalOswal.com); +91 22 3312 4975
Mohit Baheti
(Mohit.Baheti@MotilalOswal.com); +91 22 3010 2492
Investors are advised to refer through important disclosures made at the last page of the Research Report.
Motilal Oswal research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P Capital.

ART
|
GCPL FY17
ACCOUNTING / AUDITING MATTERS
Subsidiaries drag organic performance
Revenue grew by 10% to INR96.1b (FY16: INR48.9b) and PBT (before
exceptional) increased by 12%, primarily led by acquisitions. Organic revenue
and PBT growth stood at 4% and 7%, respectively. In constant currency term
organic revenue growth was 6%.
Profitability was primarily dragged by subsidiaries. Adjusted for acquisitions (of
SON and Canon in FY17), subsidiary revenue grew by a mere 3% and PBT (before
exceptional items) declined by 11%.
EBITDA margin expanded by 100bp to 19.7% (FY16: 18.7%) due to a higher gross
margin. Margin expansion was led by the standalone entity, which saw margin
expansion of 200bp.
Exhibit 1: Subsidiaries drag operating performance
FY16
INR b
%
48.8
100
19.9
40.8
28.9
59.2
15.7
3.3
9.9
0.4
9.4
0.5
8.9
0.6
9.5
-
9.5
2.3
7.2
32.2
6.8
20.2
0.9
19.3
1.1
18.2
1.3
19.4
-
19.4
4.6
14.8
Standalone
FY17
INR b
%
50.9
100
20.5
40.2
30.4
59.8
16.1
3.0
11.4
0.6
10.8
0.4
10.4
0.6
11.1
-
11.1
2.6
8.5
31.6
5.9
22.3
1.1
21.2
0.7
20.5
1.2
21.8
-
21.8
5.1
16.7
Subsidiary (Derived)
FY16
FY17
INR b
%
INR b
%
38.7
100
45.2
100
18.7
48.4
20.9
46.1
20.0
51.6
24.3
53.9
7.3
6.1
6.5
0.6
5.9
0.6
5.3
0.2
5.5
(3.3)
2.2
1.1
1.1
19.0
15.8
16.8
1.4
15.3
1.7
13.7
0.6
14.3
(8.6)
5.6
2.9
2.8
9.8
6.9
7.6
0.8
6.8
1.1
5.7
0.1
5.8
0.0
5.8
1.2
4.6
21.8
15.3
16.8
1.9
15.0
2.4
12.5
0.3
12.8
0.0
12.8
2.6
10.2
Consolidated
FY16
FY17
INR b
%
INR b
%
87.5
100
96.1
100
38.7
44.2
41.3
43.0
48.9
55.8
54.8
57.0
23.1
9.4
16.4
1.0
15.4
1.2
14.2
0.8
15.0
(3.3)
11.7
3.4
8.3
26.3
10.8
18.7
1.1
17.5
1.4
16.2
1.0
17.1
(3.8)
13.3
3.8
9.5
25.9
9.9
19.0
1.4
17.6
1.5
16.1
0.8
16.9
0.0
16.9
3.8
13.1
27.0
10.3
19.7
1.5
18.3
1.5
16.8
0.8
17.5
0.0
17.6
3.9
13.6
Revenue (Operations)
Raw Materials Consumed
Gross Margin
Operating and
Administrative Expenses
Personnel Cost
EBITDA
Depreciation
EBIT
Financial Charges
EBT
Other Income
PBT (Before Exceptional Items)
Exceptional Items
PBT
Tax
PAT
Source: Company Annual Report, MOSL
Exhibit 2: Subsidiary performance weak (INR b)
Subsidiaries (excluding
Son
Total
SON and Canon)
and Canon
Subsidiaries
FY16
FY17
FY16
FY17
FY16
FY17
Revenue
38.7
39.9
-
5.3
38.7
45.2
Growth
3%
17%
EBITDA
6.5
6.6
-
1.0
6.5
7.6
Growth
2%
17%
PBT (Before Exceptional)
5.5
4.9
-
0.9
5.5
5.8
Growth
-11%
5%
1. Intercompany eliminations have been ignored for the above calculations
Source: Company Annual Report, MOSL
Particulars
2.
African operations (including SON) reported revenue of INR20b and EBITDA of INR3b in FY17
Investment in subsidiaries increases…
Standalone’s Investment in subsidiaries increased from INR24.4b in FY16 (57%
of net worth) to INR27.8b in FY17 (52% of net worth).
4 January 2018
2

ART
|
GCPL FY17
Exhibit 3: Investment in subsidiaries (INR b)
Subsidiary Investment
Godrej Consumer Products Holding (Mauritius) Ltd.
Godrej Mauritius Africa Holdings Ltd.
Godrej Consumer Products Mauritius Ltd.
Godrej East Africa Holdings Ltd.
Godrej Netherlands B.V.
Godrej SON Holdings INC.
Others
Total
% of Net Worth
FY15
9.9
3.2
6.1
0.5
0.8
-
0.7
21.2
47%
FY16
10.0
5.0
6.1
1.1
1.1
-
1.1
24.4
57%
FY17
11.0
6.2
6.2
2.1
1.1
0.01
1.3
27.8
52%
Source: Company Annual Report, MOSL
…dragging return ratios
Consolidated return ratios
dragged by muted
subsidiary performance
Standalone return ratios ex investment in subsidiaries remained high (ROCE of
62%; ROE of 63%) and were the highest in the last five years. However, the
consolidated ratios (ROCE of 17% and ROE of 27%) were dragged by a muted
subsidiaries performance.
We believe that this was primarily driven by higher capital intensity and a
relatively weak operating performance of subsidiaries.
The standalone business has a negative working capital cycle (FY17: -59 days),
but a high working capital cycle for subsidiaries (especially Africa) leads to a
positive cash conversions cycle (FY17: 19 days; refer Exhibits 16 and 17 for
details) for the consolidated entity.
Also, the EBIT margin is the highest in India at 21% and has been low in Africa at
13%.
Exhibit 5: …much better than consolidated return ratios
ROE -Standalone*
57%
63%
42%
ROCE - Consolidated
55%
33%
15%
15%
16%
16%
17%
ROCE - Standalone*
60%
62%
Exhibit 4: Standalone return rations…
ROE - Consolidated
60%
50%
39%
26%
21%
22%
19%
27%
FY13
FY14
FY15
FY16
FY17
FY13
FY14
FY15
FY16
FY17
*Excluding investment in subsidiaries
Source: Company Annual Report, MOSL
Exhibit 6: EBIT margins highest in India (INR b)
EBIT
21%
19%
13%
10%
Margin
EBIT margins dragged by
Africa
11
India
*Including SON
3
Indonesia
3
Africa*
1
Others
Source: Company Annual Report, MOSL
4 January 2018
3

ART
|
GCPL FY17
Subsidiary performance – a mixed bag
Our analysis of subsidiaries’ financial statements highlights that some
subsidiaries (Indonesia, the UK and Africa (Darling)) reported healthy growth in
profitability. However, the performance of Sri Lanka, Bangladesh, Africa
(excluding Darling) and LATAM subsidiaries was weak, which led to a subdued
overall subsidiary performance.
PAT of Darling stood at INR1.5b (FY16: INR0.5b – for ~15 months’ operations);
the UK and Indonesian businesses too registered a decent performance.
FY16
Turnover
5,216
80.4
579.7
-
281
13,485
15,679
9
232.7
383.9
2,256
FY17
Turnover
3,790
242.9
447.3
559
577
13,193
15,802
546
223.9
410.4
5,220
Exhibit 7: Some subsidiaries outperform (INR m)
Particulars
Godrej Consumer Products (UK) Ltd
Godrej UK Limited
Godrej Global Mid East FZE
Godrej Indonesia IP Holdings Ltd
Godrej MID East Holding Limited
PT Megasari Makmur
PT Intrasari Raya
PT Ekamas Sarijaya
PT Sarico Indah
PT Indomas Susemi Jaya
Darling Trading Company Mauritius Ltd
Net Worth
1,283
2,233.1
116.1
12,071
12,337
5,028
457
77
110.6
436.5
394
PAT
263
79.4
12.1
(1)
269
1,490
135
4
16.3
75.5
477
Net Worth
1,178
1,901.4
112.1
11,884
12,146
5,377
615
116
107.3
407.6
836
PAT
297
242.5
23.7
559
561
1,506
168
40
(0.5)
87.4
1,489
Source: Company Annual Report, MOSL
Exhibit 8: Dragged by other subsidiaries (INR m)
Particulars
Godrej Household Products (Bangladesh) Pvt. Ltd.
Godrej Household Products (Lanka) Pvt. Ltd.
Godrej Netherlands BV
Godrej South Africa (Pty) Ltd.
Godrej Holdings (Chile) Limitada
Godrej Consumer Investments (Chile) Spa
Cosmetica Nacional (Chile)
Plasticos Nacional
Godrej Nigeria Ltd.
Godrej Consumer Products Dutch Coöperatief U.A.
Godrej Consumer Holdings (Netherlands) BV
Laboratoria Cuenca
Deciral Uruguay
Consell SA
Issue Brazil
Panamar Producciones S.A.
Godrej Mauritius Africa Holding Ltd.
Godrej Africa Holding Limited
Frika Weave (PTY) LTD
Kinky Group (Pty) Ltd
Weave Ghana Ltd
Lorna Nigeria Ltd.
Godrej West Africa Holdings Ltd.
Subinite (Pty) Ltd.
Weave IP Holdings Mauritius Pvt. Ltd.
Weave Mozambique Limitada
Hair Trading (offshore) S. A. L
Godrej East Africa Holdings Ltd
DGH Phase Two Mauritius
Style Industries Limited
Charm Industries Limited
Hair Credentials Zambia Limited
Net Worth
(83.8)
133.9
1,092
998
2,796.7
2,649.6
1,446
47.7
337
7,058
6,626.3
738
45.2
1.5
(28.0)
34.5
4,615
20,708.1
32.1
105.2
377.6
1846.5
1079
549
23.8
1,078
625
702.8
2,655.0
2,434
161.1
-
FY16
Turnover
730.7
395.4
83
1,166
114.7
0.5
2,302
64.9
601
333
370.3
3,391
215.4
-
-
-
346
464.3
353.6
254.8
870.8
2882.8
37.7
2,514
-
2,074
4,257
91.1
95.4
3,377
124.0
-
PAT
(164.8)
(5.7)
30
164
99.1
0.5
102
(4.4)
40
327
326.3
274
(30.2)
(3.8)
(11.7)
(2.2)
29
460.2
-17.7
-46.2
13.2
354.2
40.5
13
(4.2)
421
676
-
41.0
(53)
(5.4)
-
Net Worth
407.4
164.4
1,090
1,150
2,916.3
2,604.0
1,415
45.6
205
6,919
6,430.9
989
118.5
1.6
(29.8)
31.4
9,077
22,542.1
25.3
72.8
615.3
2180.5
1059.3
534
3.3
1,469
370
1,379.8
2,617.9
2,239
157.9
33.6
FY17
Turnover
472.0
385.8
243
1,168
191.1
-
1,821
70.4
615
1,041
1,156.1
3,522
214.2
0.5
2.6
-
980
398.0
179
287
973.1
3066.8
0
3,415
-
2,661
1,720
14.3
30.0
2,929
297.6
32.8
PAT
(236.2)
(45.9)
199
31
168.9
-
184
(1.7)
(11)
1,012
955.1
309
6.5
0.2
0.9
(0.5)
617
391.3
-10.8
-45.1
-35.2
-171.1
-1.1
(82)
(20.0)
686
536
(273.2)
24.5
(155)
2.1
(35.0)
Source: Company Annual Report, MOSL
4 January 2018
4

ART
|
GCPL FY17
SON acquired using debt
GCPL acquired a 100% equity stake in Strength of Nature (SON), a manufacturer
and marketer of hair care products for women of African descent. The
acquisition will help the group expand its Wet Hair Care presence in Africa.
For SON, the total purchase consideration comprises: (a) the initial purchase
consideration (INR12.4b) and (b) the estimated value of the earn-out payment
of INR8.6b payable in FY19 (based on a multiple of future EBITDA of this
business).
We believe SON was acquired using debt of USD110m (~INR7.2b) taken by
Godrej SON Holding Inc and USD85m (INR5.3b) by Godrej Consumer Products
Holding (Mauritius), for which guarantee is given by the standalone entity.
GCPL also acquired a 75% equity stake in Canon Chemicals (Canon).
In FY17, the acquired businesses contributed revenues and PAT of :
SON: Revenue of INR5.3b and profit of INR 0.4b
Canon: Revenue of INR0.7 and profit of INR0.07b
If the acquisitions had occurred on 1 April 2016, consolidated pro forma revenue
would have been higher by a mere INR320m and profit by INR23m.
SON acquired using Debt of
~INR7.2b
Exhibit 9: Significant goodwill recognized on acquisitions (INR b)
Particulars
Cash paid
Contingent consideration
Liability to acquire balance stake
Total purchase consideration
Less: Net identifiable assets acquired
Goodwill
SON
12.4
8.6
0
21.0
(16.8)
4.2
Cannon
1.3
-
0.6
1.9
(1.3)
0.7
Source: Company Annual Report, MOSL
Exhibit 10: SON acquired using debt
GCPL
1b Equity
5b Debt* ----->
Godrej Consumer Products Holding (Mauritius) Ltd
5b Equity
Godrej Consumer Products US Holding Limited
5b Equity
7b Debt ------->
Godrej SON Holdings INC
12.4b Equity
SON LLC
*
Guarantee given by GCPL
Source: Company Annual Report, MOSL
4 January 2018
5

ART
|
GCPL FY17
Intangibles high at 135% of net worth
Intangibles increased to INR71b, 135% of net worth (FY16: INR51b, 119% of net
worth).
The increase in intangibles was mainly due to addition of INR15.6b of
trademarks and brands on account of the acquisition of subsidiaries during the
year.
Goodwill for Africa increased to INR27.7b (FY16: INR22.5b) on addition of
INR4.2b on acquisition of SON.
As allowed under Ind-AS, GCPL has changed its amortization policy for brands
like Goodknight, Hit, Valon, Abuja and Darling Class-3, which are assessed as
intangibles having indefinite useful life and are not amortized in the financial
statements.
Further, other trademarks/brands are amortized over a period of 10 years
through the P&L, except Kinky and Soft & Gentle brand, which are amortized
over a period of 20 years.
FY13
29.1
10.9
39.9
113%
FY14
35.5
10.5
46.0
115%
FY15
40.4
9.5
49.9
112%
FY16
41.4
9.4
50.8
119%
FY17
46.6
24.8
71.4
135%
Exhibit 11: Intangibles as % of net worth
Total Intangible Assets
Goodwill
Intangibles Assets Capitalized
Total
% of Networth
Source: Company Annual Report, MOSL
Exhibit 12:
Goodwill recognized for African business (INR b)
Indonesia
Africa (including SON)
Argentina
Others
Total
FY15
13.1
21.7
2.8
2.9
40.5
FY16
13.0
22.5
3.1
2.9
41.4
FY17
13.5
27.7
3.0
2.5
46.6
Goodwill of African
subsidiary at INR27.7b
Source: Company Annual Report, MOSL
Tax rates remain low
GCPL benefits from the tax holiday available to units set up under section 80-IC
and 80-IE of the Income Tax Act. These tax holidays are available for a period of
10 years from the date of commencement of operations.
FY16
11.7
36%
4.2
FY17
16.9
27%
4.6
Exhibit 13: Tax rates remain low on benefit from 80IC and 80IE (INR b)
Particulars
Profit Before Tax
Statutory Income tax rate
Expected income tax expense
Tax effect of adjustments to reconcile expected
Tax Expense to reported Tax expense
Deduction under Sec 80IC & 80IE of Indian Income Tax Act, 1961
Additional tax paid on book profits
Unclaimed withholding tax credit
Deferred Tax Asset not recognized on losses
Others
Total income tax expense
Effective Tax Rate (B/A)
(2.1)
0.8
0.1
0.1
0.2
3.4
29%
(2.1)
0.8
0.2
0.2
0.1
3.8
22%
Source: Company Annual Report, MOSL
4 January 2018
6

ART
|
GCPL FY17
Working capital boost cash flows
Earnings to cash flow conversion improved significantly to 116.6% (FY16: 72.3%),
primarily on account of lower working capital requirement.
Consolidated cash conversion cycle improved to 19 days (FY16: 31 days)
primarily driven by standalone operations, where the cash conversion cycle
improved to -59 days (FY16 -40 days) due to a rise in payable days.
CFO increased to INR18.1b due to release of working capital of INR3.6b v/s
additional working capital required of INR4.6b in FY16.
Exhibit 14: Earnings to cash conversion remains strong
Pre-Tax CFO to EBITDA
Earnings to cash flow
conversion boosted by
lower working capital
requirements
104.5%
118.8%
93.8%
72.3%
116.6%
FY13
FY14
FY15
FY16
FY17
Source: Company Annual Report, MOSL
Exhibit 15: CFO boosted by release of working capital (INR b)
Particulars
PBT (Operations)
Add/(Less): Non-cash adjustments
Less: Direct taxes paid
Operating profit before w/cap changes
Inventories
Trade receivables
Other assets
Trade and Other payables
Current liabilities and provisions
Working capital Changes
Cash generated from operations
before exceptional Items
Add/(Less): Exceptional Items
Cash generated from operations
Less: Financial cost
Cash generated from operations post interest
Less: Capital expenditure
Less: Investment in Subsidiaries
Free cash flow post interest
Standalone
FY16
FY17
9.5
11.1
0.7
0.4
(2.0)
(2.4)
8.1
9.1
(0.7)
(0)
(1.3)
0.7
(0.1)
(0.6)
-
-
(0.9)
2.6
(3.0)
2.7
5.1
-
5.1
(0.4)
4.7
(0.9)
(2.7)
1.0
11.8
-
11.8
(0.3)
11.5
(1.0)
(3.3)
7.1
Subsidiaries (Derived)
FY16
FY17
5.5
5.8
1.0
1.5
(1.4)
(1.7)
5.2
5.6
(1.6)
0.5
(1.9)
1.1
(0.5)
(0.3)
0.2
2.1
2.2
(2.4)
(1.6)
0.9
3.6
(0.2)
3.4
(0.8)
2.6
(1.2)
(3.7)
(2.3)
6.5
(0.2)
6.3
(0.9)
5.4
(0.8)
(11.0)
(6.4)
Consolidated
FY16
FY17
15.0
16.9
1.7
1.9
(3.4)
(4.1)
13.3
14.7
(2.4)
0.5
(3.2)
1.7
(0.6)
(0.9)
0.2
2.1
1.3
0.2
(4.6)
3.6
8.7
(0.2)
8.5
(1.2)
7.3
(2.1)
(6.5)
(1.3)
18.3
(0.2)
18.1
(1.2)
16.8
(1.8)
(14.3)
0.7
Source: Company Annual Report, MOSL
Exhibit 16: Standalone - Negative CCC
Standalone
Inventory Days
Receivable Days
Payable Days
Cash conversion cycle
FY13
104
10
129
-15
FY14
97
11
138
-30
FY15
89
11
145
-45
FY16
96
16
152
-40
FY17
100
17
176
-59
Exhibit 17: Consolidated- Subs derives CCC positive
Consolidated
Inventory Days
Receivable Days
Payable Days
Cash conversion cycle
FY13
113
33
112
34
FY14
109
34
117
26
FY15
102
32
110
24
FY16
112
40
121
31
FY17
120
41
142
19
Source: Company Annual Report, MOSL
Source: Company Annual Report, MOSL
4 January 2018
7

ART
|
GCPL FY17
40% funds sourced from borrowings; 35% deployed for non-core
investments
Over the last five years, 58% of the funds were generated from internal accruals
and 40% from borrowings, which are used mainly for acquisitions and also for
non-core investments and cash.
Exhibit 19: …used for core and non-core investments
Exhibit 18: FCF and borrowings
0.4b , 2%
10b , 40%
15b , 58%
Free Cash Flow
Borrowings
Other Income
2b , 9%
Acquisitions
Investments &
Cash
Dividend
9b , 35%
14b , 56%
Source: Company Annual Report, MOSL
Source: Company Annual Report, MOSL
Cash and investments soar; debt also increases
GCPL’s cash & investments increased to INR18b, 34% of net worth (FY16: INR8b,
19% of net worth), as the company made additional investments in mutual
funds and deposits with NBFCs; cash balance increased to INR9b (FY16: INR6b).
Yields on cash & investments fell to 6% (FY16: 9%).
Debt increased by INR11b to INR40b (FY16: INR29b), which we believe was
mainly taken at the subsidiary level (Godrej Consumer Products Holding
(Mauritius Limited, and Godrej Son Holding INC) for the acquisition of SON.
Though there is a positive carry on debt and cash balances, we note that the
debt being in USD bears forex risk.
Exhibit 20: Investments and cash balances soar (INR b)
Particulars
Cash (A)
Non Current Investments
In Deposits with NBFC
In Non-convertible Debentures with NBFC
Godrej Industries Ltd.
In associates
Total Non-current Investments (B)
Current Investments
In Mutual Funds
In Deposits with Non-Banking Financial Companies
In Non-convertible Debentures with NBFC
Total Current Investment (C)
Cash And Investments
As a % of Net Worth
FY15
4.0
-
-
0.0
0.2
0.2
1.6
-
-
1.6
5.9
13%
FY16
6.1
-
-
0.0
0.3
0.3
0.7
0.8
-
1.5
8.0
19%
FY17
9.0
0.6
1.5
-
0.4
2.5
4.5
1.7
0.5
6.8
18.3
34%
Cash & investments
increased to INR18b, 34% of
net worth
Source: Company Annual Report, MOSL
4 January 2018
8

ART
|
GCPL FY17
Exhibit 21: Yield on cash and investment
10%
7%
9%
6%
FY14
FY15
FY16
FY17
Source: Company Annual Report, MOSL
Exhibit 22: Borrowings increase led by subsidiaries (INR b)
Standalone
Subsidiaries (Derived)
Total - Consolidated
40.0
24.6
21.5
3.1
FY13
23.7
20.9
2.9
FY14
FY15
FY16
27.2
27.2
28.9
38.5
Exhibit 23: Finance cost remains low
4.4%
4.2%
4.1%
3.6%
4.2%
28.9
1.5
FY17
FY13
FY14
FY15
FY16
FY17
Source: Company Annual Report, MOSL
Source: Company Annual Report, MOSL
Fair valuation of put options dent net worth
Ind-AS leads to a reduction in FY16 equity by INR8.2b, mainly on account of
INR7.1b reduction on fair valuation of put option given to minority shareholders
of Darling and Chile business. As required by Ind-AS, such put options have been
classified as financial liability and carried at fair value.
Exhibit 25: Ind AS Adjustment to profitability
Reconciliation of Comprehensive income
Profit After Tax as per Indian GAAP
Summary of Ind AS adjustments
Change in fair value of call/ put options
for Darling & Chile businesses
Dividend paid to Non-controlling shareholders
Acquisition related costs
Other Ind AS adjustments
Other Comprehensive Income (Net of Tax)
Total Ind AS adjustments
Total Comprehensive Income as per Ind AS
FY16
11.2
(1.8)
(0.6)
(0.7)
0.1
(0.7)
(3.6)
7.6
Exhibit 24: Ind AS Adjustment to Equity
Particulars
Total Equity as per Indian GAAP
Summary of Ind AS adjustments
Change in fair value of call/ put options
for Darling & Chile businesses
Deferred tax on Ind AS Adjustments
Interim dividend recognized on approval
Other Ind AS adjustments
Non-Controlling Interest
Total Ind AS adjustments
Total Equity as per Ind-AS
As on
As at
1 Apr 2015 31 Mar 2016
43.1
51.0
-
-
(4.9)
(1.6)
1.0
(0.2)
0.0
(5.7)
37.4
(7.1)
(1.8)
1.1
(0.6)
0.1
(8.2)
42.8
Source: Company Annual Report, MOSL
Source: Company Annual Report, MOSL
4 January 2018
9

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ART
|
GCPL FY17
Disclosure of Interest Statement
Analyst ownership of the stock
Godrej Consumer
No
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4 January 2018
10