Godrej Group stock jumps 8% after reporting 89% YoY net profit growth in Q3

The shares of the leading manufacturer of oleochemicals gained up to 8 percent after the company’s net profit and revenue stretched by 89 percent and 34 percent YoY, respectively in Q3FY25.

Share Price Movement

With a market capitalization of Rs 29,566.83 crore, the shares of Godrej Industries Ltd were trading at Rs 878.00 per share, increasing around 8 percent as compared to the previous closing price of Rs 812.85 apiece.

Reason for Rise

The shares of Godrej Industries Ltd have seen significant movement after announcing its financial performance in which revenue magnified by 34 percent on a year-on-year basis from Rs 3,590 crore in Q3FY24 to Rs 4,825 crore in Q3FY25. However, on a Quarter-on-Quarter basis, revenue zoomed by 1 percent from Rs 4,805 crore in Q2FY25 to Rs 4,825 crore in Q3FY25.

Moreover, net profit jumped by 89 percent on a yearly basis from Rs 165 crore in Q3FY24 to Rs 312 crore in Q3FY25, meanwhile, on a quarter-on-quarter basis, net profit down by 36 percent from Rs 489 crore in Q2FY25 to Rs 312 crore in Q3FY25.

Revenue mix

The company’s revenue mix comprised Animal Feed (~29%), Estate & Property Development (~19%), Chemicals (~16%), Veg Oils (~11%), Dairy (~9%), Crop Protection (~7%), Finance & Investments (~7%), and Others (2%). These sectors collectively drove its financial performance.

Also read: India Cements & 3 other stocks in which Morgan Stanley Asia bought fresh stakes in Q3

Business Segments

The company operates in Consumer (GCPL) with home care, air fresheners, fabric care, personal care (shampoo, hair color, Park Avenue, KamaSutra); Chemicals, including fatty alcohols, surfactants, glycerin, fatty acids; Real Estate, adding a Rs 1,250 crore Bengaluru project in 9MFY24; and Agri-Business covering animal feed, vegetable oil, dairy, crop protection, and many more.

Ratio analysis

The company’s critical ratios show that the return on equity decreased from 12.20 percent in FY22-23 to 0.74 percent in FY23-24, while the return on capital employed decreased from 10.20 percent to 8.72 percent. The net profit margin (NPM) for fiscal year 23-24 is 3.90 percent.

Company Profile

Godrej industries Ltd , is India`s leading manufacturer of oleochemicals and makes more than a hundred chemicals for use in over two dozen industries.The company also has a modern, integrated manufacturing facility at Valia in the Indian state of Gujarat.

Written by Abhishek Singh

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