Godrej Industries has posed a flat growth in Q1 with a consolidated net profit of ₹63.76 crore compared with ₹62.73 crore in the same period last year. The consolidated sales were ₹1,974.62 crore during the quarter as against ₹1,427.81 crore a year ago. While all the businesses are doing well, Godrej Agrovet is particularly doing well because of the good monsoon this year. Godrej Properties is also witnessing good demand despite the dull real-estate market. Speaking to BTVI , Godrej Industries Chairman Adi Godrej says the La Nina effect promises good monsoons in coming years, and the GST Bill is expected to bolster margins of the company. The GST will add to the GDP growth of the country and boost confidence of India Inc. While Godrej is open to list its agri business unit, there is no fixed plan, he says. Excerpts:
For this quarter, all our businesses, including subsidiary and associate companies, did quite well despite the general macro-economic difficulties. However, I think Godrej Agrovet did particularly well for two reasons. One, we had a very good monsoon. We were expecting a very good monsoon in the first quarter after two poor monsoons. Also, Agrovet had acquired two companies — Creamline Dairy and Astec Life Sciences — towards the end of the last financial year, which have added to a lot of synergy in Agrovet.
Our other businesses also did quite well. But now, with the monsoon turning out to be very good, with the likelihood of 3-4 good monsoons because of the La Nina effect in the Pacific Ocean, and with the GST Bill being passed, we expect to do very well in the quarters to come.
Godrej Properties has been outperforming despite a lull in the real-estate industry. How has it performed in Q1? What’s the prospect going forward? Do you have any big project on the anvil?
We have announced a lot of projects. The biggest project is ‘The Trees’ in Vikhroli and that project has done very well. We will continue to add new phases to that project. We are launching many other projects across the country.
Godrej Properties had its best ever year last year despite the general real-estate sector not doing overly well. However, with the GST coming in from 2017, I think real estate will do very well because the GST will add to the GDP growth of the country and the confidence of the people. So I expect the real estate to pick up strongly over the next 2-3 years.
How is the rural demand panning out? Are you seeing a pick-up?
Godrej Agrovet, particularly, is already seeing strong rural demand. Godrej Consumer Products, too, is seeing a strong pick-up in rural demand during July and August, particularly in the first half of August.
Godrej Agrovet, is picking up now after being flat for a couple of quarters. So what’s the plan there for listing? You had said that you will look at listing it at some point of time.
There is no fixed plan for listing. We said we would list it as and when required, if we need funding for future growth, especially through acquisitions. But as of now, we have no immediate plan for listing.