Godrej Agrovet Ltd recorded a net profit of Rs105.98cr, up 19.74% in the quarter ended June 2021 as against Rs88.51cr during the previous quarter ended June 2020.
The company’s sales rose 28.23% to Rs1987.60cr in the quarter ended June 2021 as against Rs1550.01cr during the previous quarter ended June 2020.
The stock ended at Rs648 down by Rs30.65 or 4.52% from its previous closing of Rs678.65 on the BSE. The scrip opened at Rs680.05 and has touched a high and low of Rs682 and Rs626.55 respectively.
Commenting on the performance of the Q1FY21, Mr. B. S. Yadav, Managing Director, Godrej Agrovet Limited, said: I am pleased to share with you the financials of Godrej Agrovet Limited for the quarter ended June 30, 2021. Consolidated total income was Rs.2,003 crore, registering a growth of 28.2% year-on-year. Consolidated profit before tax was Rs.137 crore, registering a growth of 2.3% year-on-year. It was one of the best quarterly performance for the animal feed business with segment results growing by 32.5%, supported by volume growth and R&D benefits realization. Vegetable oil benefitted from higher oil prices and posted segment results of Rs.32.6 crore which was a 4X increase year-on-year."
"Standalone crop protection business also registered a modest growth of 5.9% in segment results. However, Astec LifeSciences EBITDA declined by 13.7% 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 price. Our dairy subsidiary, Creamline dairy registered an EBITDA loss of Rs.3.1 crore due to increase in the 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."
"The second wave of COVID-19 has significantly impacted economic recovery seen in the preceding quarter, especially in rural India which had a much stricter lockdown. 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 m-o-m 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 percentage increases leading to the normalization of business activities,”