Godrej Agrovet Q2 net up 51 per cent at ₹105 crore on higher sales

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Diversified agribusiness firm Godrej Agrovet Ltd (GAVL) has reported a 51.1 per cent increase in profit after tax at ₹105 crore for the quarter ended September, 2023. In the same period last year, GAVL had reported a PAT of ₹70 crore.

Revenues for the quarter were up 5.1 per cent at ₹2,571 crore over the same period last year’s ₹2,445 crore. Earnings before interest, tax and depreciation (EBITDA) was up 34.9 per cent at ₹215 crore over the same period last year’s 159 crore.

In the first half of fiscal 2024, GAVL’s profit after tax is up 36.5 per cent at ₹215 crore compared to same period last year’s ₹157 crore. Revenues for H1FY24 were up 2.5 per cent at ₹5,081 crore compared to the same period last year’s ₹4,955 crore.

Commenting on the results, BS Yadav, Managing Director, GAVL, all the segments of the company, with the exception of Astec LifeSciences, achieved growth in profitability during the quarter. Buoyed by the upbeat volume growth as well as realisations in the in-licensed portfolio, domestic crop protection business successfully maintained consistent performance in the second quarter. Despite erratic rainfall in India, the domestic crop protection business achieved a growth of 53 per cent in topline and 149 per cent in segment results.

“Our food businesses continued to deliver healthy volume growth in branded products along with sustainable margin expansion. Poultry business recorded exceptional profitability in Q2 FY24 in an otherwise seasonally weak quarter. Better operational efficiencies in live bird operations coupled with 14 per cent year-on-year volume growth in branded business boosted profitability. Dairy business performance continued to improve sequentially and achieved EBIT breakeven in Q2 FY24. This was primarily driven by lower procurement costs, operational efficiencies and a rising share of value-added products” Yadav said.

“In feed business, cattle-feed and aqua-feed categories maintained strong volume growth while achieving further improvement in margin profile. The vegetable oil business recorded substantial growth in FFB (Fresh fruit bunches) volumes, more than offsetting the decline in end-product prices. Astec LifeSciences continued to witness an extremely challenging external market environment which weighed heavily on Astec’s revenues and margin performance in Q2 FY24. Contract manufacturing segment, however, performed in line with our expectations with higher volume and margin growth.” he said.