Mumbai, February 2, 2024: Godrej Agrovet Limited (“GAVL”) has today announced its Financial Results for the Third Quarter and Nine Months’ period ended December 31, 2023
 
HIGHLIGHTS OF FINANCIAL PERFORMANCE (Q3 and 9M FY24)
 

• The Company reported consolidated revenues from operations of Rs. 7,426.3 crore in 9M FY24 as compared to Rs. 7,278.7 crore in 9M FY23, a growth of 2.0% year-on-year
• 9M FY24 Profit after tax* increased to Rs. 299.2 crore from Rs. 224.3 crore in 9M FY23, a growth of 33.4% year-on-year
• In Q3 FY24, the Company reported consolidated revenues from operations of Rs. 2,345.2 crore as compared to Rs. 2,323.5 crore in Q3 FY23
• Q3 FY24 Profit after tax* increased to Rs. 84.6 crore from Rs. 67.0 crore in Q3 FY23, a growth of 26.3% year-on-year

 

* Excluding Non-recurring & Exceptional Items
Profit before tax excludes share of profit from associates

MANAGING DIRECTOR’S COMMENTS

Commenting on the performance, Mr. B. S. Yadav, Managing Director, Godrej Agrovet Limited, said:

Godrej Agrovet reported a strong 26% year-on-year growth in profit after tax in Q3 FY24, primarily led by domestic Crop Protection and Dairy businesses. While revenue growth was flat, EBITDA margin continued to improve. Excluding Astec LifeSciences, growth in profit after tax was even higher at 65% in Q3 FY24. Astec’s enterprise business has been facing extremely challenging external market conditions which have severely impacted its topline and margin performance.

On a 9M FY24 basis, profit after tax grew by 33% year-on-year. Except Astec and Vegetable Oil, all the other businesses contributed to strong growth in profitability. Godrej Agrovet has also achieved significant improvement in its leverage profile as well as operating cash flows over the past two years. This was attributed to efficient working capital management and steadfast focus on credit hygiene across businesses.

Domestic Crop Protection business continued to deliver robust and consistent financial performance, with an excellent growth of 73% in topline and a segment margin of 30% in Q3 FY24. This was primarily driven by in-licensed portfolio as well as key plant growth regulator (PGR) category products. Food businesses also delivered healthy volume growth in branded products along with sustainable margin expansion. Dairy business remained on a strong recovery path and achieved significant improvement in segment margin in Q3 FY24. This was primarily driven by operational efficiencies, lower procurement costs and a rising share of value-added products. Poultry business maintained volume growth in branded products of 15% year-on-year in Q3 as well while sustaining improved operational efficiencies. However, volume performance was offset by sharp drop in live bird prices which impacted profitability.

In Feed business, sustained volume growth in cattle-feed was offset by slightly lower poultry feed and flat aqua feed volumes. Vegetable oil business profitability was impacted by lower end-product prices coupled with drop in Fresh Fruit Bunch (FFB) volumes. Astec LifeSciences continued to witness realization and demand headwinds in enterprise products on account of inventory glut across key markets.

Animal Feed

• Sustained growth in cattle feed volumes (+8% y-o-y) was partly offset by lower poultry feed sales. Animal Feed segment achieved highest ever quarterly volume in Q3 FY24.
• Segment margin was adversely impacted due to unfavorable commodity movements in poultry & cattle feed categories
• For 9M FY24, Animal feed segment recorded modest volume growth led by cattle feed and aqua feed categories. Segment margin improved considerably as compared to the same period last year

Vegetable Oil

• Lower end-product prices and 4% drop in Fresh Fruit Bunch (FFB) arrival volumes impacted topline and profitability in Q3 FY24
• Oil extraction ratio improved sequentially as well as vs. Q3 FY23
• In terms of 9M FY24, healthy volume growth of 8% was more than offset by lower Crude Palm Oil & Palm Kernel oil prices

Crop Protection (Standalone)

• Standalone Crop Protection segment maintained strong growth momentum in the third quarter as well
• Topline and margin growth in Q3 FY24 was driven by higher sales of in-licensed portfolio and Plant Growth Regulators (PGR) products coupled with lower returns as compared to previous year
• Robust performance throughout the year has resulted in topline growth of 49% and segment margin of 31% in 9M FY24

Astec LifeSciences

• Sustained weakness in key enterprise products impacted Astec’s revenues and margins as compared to same period last year. However, Contract Manufacturing (CMO) business margins continued to improve
• On the product development front, Astec remains on track to commercialize new products in the coming quarters
• In terms of YTD performance, Astec’s contract manufacturing business delivered strong volume and margin performance. However, it was offset by subdued performance in enterprise products due to severe demand-supply imbalance and lower realisations.

Dairy

• Dairy business achieved robust improvement in segment margin led by significant operational efficiencies and lower raw material costs
• Value-Added Products (VAP) revenues grew by 20% year-on-year in Q3; growth was driven equally by volumes as well as realizations
• For 9M FY24, Dairy business has achieved significant turnaround in its profitability. Salience of VAP has improved to 36% of total sales from 32%, a year ago

Godrej Tyson Foods Limited

• GTFL’s revenues and profitability were impacted by sharp drop in live bird prices on account of excess supply in Q3 FY24 vis-à-vis Q3 FY23
• Branded business, however, maintained healthy volume growth of 15% year-on-year in Q3. Real Good chicken category continued to achieve margin improvement.
• In terms of 9M FY24, GTFL has achieved excellent growth in profitability led by consistent performance in branded products and operational efficiencies.

ACI Godrej Agrovet Private Limited, Bangladesh

• ACI Godrej posted PBT growth of 145% year-on-year (in local currency terms) in 9M FY24, driven by better realizations coupled with modest volume growth. Margin profile improved significantly across categories primarily due to favorable commodity positions