Abstract

Godrej Consumer Products Limited (GCPL) is one of India’s most popular and largest FMCG companies and is promoted by India-based global conglomerate, the Godrej Group. The company has 1.15 bn consumers globally with operations in more than 90 countries. It has shown strong financial performance with a steady increase in PAT and EBDITA. The case study captures the background of the company and highlights its financial performance while determining the drivers of the Indian FMCG space. It helps to analyze the financial performance of GCPL using ratio analysis, the DuPont model, Common Size, and Common Base and to analyze the Degree of Financial Leverage of GCPL. It gives the student an understanding of the financials of an FMCG company and of how to analyze its financials. The case is accompanied by Excel workings.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Understand the financial statements of an FMCG company.
• Analyze the financials of an FMCG company.
• Analyze and interpret financial ratios of an FMCG company.
• Analyze and interpret common size, common base statements.
• Understand the relevance of the Degree of Financial Leverage in analyzing financial statements.

Keywords

Godrej Consumer Products Limited; Financial Statement Analysis; Ratio Analysis; FMCG; Godrej; DuPont Analysis; Common Size; Common Base; Degree of Financial Leverage; FMCG; Godrej; Liquidity; profitability; leverage; Turnover