Godrej Agrovet Ltd reported a 10.3 per cent rise in net profit for the quarter ended June 30 against the same period last year, on higher sales of animal feed and vegetable oil.
The diversified agri-business company reported a standalone net profit of ₹95.41 crore against ₹86.47 crore in same period last year. Total income on standalone basis was up 34 per cent to ₹1559.52-crore against ₹1163.60-crore in the same period last year.
In Q1 of FY22, consolidated net profit grew 4.1 per cent to ₹104.75 crore from the corresponding quarter’s profit of ₹100.59 crore. Consolidated income was up 28 per cent to ₹2003.21 crore (against ₹1562.43 crore in the same quarter last year).
“It was one of the best quarterly performances for the animal feed business with segment results growing by 32.5 per cent, supported by volume growth and R&D benefits realisation. Vegetable oil benefited from higher oil prices and posted segment results of ₹32.6 crore which was a 4X increase year-on-year,” said Balram Singh Yadav, Managing Director, Godrej Agrovet, in a statement.
“The standalone crop protection business also registered a modest growth of 5.9 per cent in segment results. However, Astec LifeSciences EBITDA declined by 13.7 per cent due to lower export sales and higher input cost inflation. In the food businesses, demand recovery seen in the previous quarter was impacted by micro-lockdowns in the current quarter. Profitability was further impacted by low end-product prices,” Yadav added.
Subsidiary faces loss
Godrej Agrovet’s dairy subsidiary, Creamline dairy, registered an EBITDA loss of ₹3.1 crore due to an increase in procurement costs. “Our poultry and poultry products business faced a challenging quarter with low end-product prices on one hand and high input costs on the other hand. As a result, Godrej Tyson Foods Limited registered a marginal loss at the EBITDA level,” Yadav said.
Animal feed business revenues were up 34 per cent to ₹1001.29 per cent during the June quarter (against ₹748 crore in Q1 last year). Similarly, the vegetable oil business registered a growth of 83 per cent to ₹288.84 crore (against ₹157.37 crore).
“The second wave of COVID-19 has significantly impacted the economic recovery seen in the preceding quarter, especially in rural India which had a much stricter lock down. Further, after a good start to the south-west monsoon, there was a long gap that resulted in lower kharif sowing. However, recovery has gained pace from July 21 onwards with macro-economic indicators improving month-on-month and rainfall in July-21 covering most parts of India. We expect recovery to be faster in the second half of the year as vaccination rates increase leading to the normalisation of business activities,” Yadav said.
Revenue from the crop protection segment during the quarter was up 15 per cent to ₹369.22 crore (against ₹320.84 crore), while the dairy business registered a growth of 13 per cent to ₹266.53 crore (against ₹236.47 crore). The poultry and processed foods business saw a growth of 7.3 per cent to ₹177.59 crore (against ₹165.46 crore).
The Godrej Agrovet scrip closed about 2 per cent lower at ₹678.65 on the BSE on Tuesday.