Godrej Agrovet Q2 revenue up 51% at ₹ 105 crore

Agri-diversity firm Godrej Agrovet Ltd (GAVL)  reported 51.1% post-tax growth of ₹ 105 crore for the quarter ended September 2023. In the same period last year, GAVL  reported a PAT of ₹ 70 crore.  Revenue for the quarter was up 5.1 percent at ₹ 2,571 crore from ₹ 2,445 crore in the previous year. Earnings before interest, tax, depreciation, and amortization (EBITDA) rose 34.9 percent to ₹ 215 crore from ₹ 159 crore in the same period last year.  During the first half of 2024, GAVL’s profit after tax rose 36.5 percent year-on-year to ₹ 215 crore. FY24 sales rose 2.5% to ₹ 5,081 crore from ₹ 4,955 crore in the same period last year. Commenting on the result, BS Yadav, CEO of GAVL, all segments of the company except Astec LifeSciences achieved an increase in profitability during the quarter.

 With the support of good volume growth and the realization of the licensed portfolio, the domestic plant protection business successfully maintained a flat result in the second quarter. Despite heavy rains in India, the domestic crop protection business posted 53 percent growth in the top line and 149 percent growth in segment results.  “Our food business continued to deliver healthy branded product volume growth and sustainable margin growth. Poultry profitability was exceptionally good in the second quarter of FY24 in an otherwise seasonally weak quarter. The efficiency of live poultry operations, together with the 14 percent annual growth in branded business volumes, improved profitability. The result of the milk business improved further compared to the previous quarter and reached zero operating profit in the second quarter of 2024. 

This was mainly due to lower procurement costs, operational efficiency, and an increase in the share of value-added products.  “In the feed business, the livestock feed and water categories maintained strong volume growth, while the margin profile improved further. In the vegetable oil business, volumes of FFB (Fresh fruits) increased significantly, which exceeded the price of final products. Astec LifeSciences continued to witness a very difficult foreign market, which had a strong impact on Astec’s turnover and margin development in the second quarter of 2024. However, the contract manufacturing segment performed in line with our expectations due to higher volume and margin growth. 

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