Godrej Agrovet Q1 PAT grows 4% to Rs 105 cr

On a consolidated basis, Godrej Agrovet's net profit rose 4.13% to Rs 104.75 crore on 28.22% jump in total revenue from operations to Rs 1,992.78 crore in Q1 June 2021 (Q1 FY22) over Q1 June 2020 (Q1 FY21).

Profit before tax gained 2.32% to Rs 137.49 crore in Q1 FY22 as against Rs 134.37 crore in Q1 FY21. EBITDA increased 3.3% to Rs 180 crore in Q1 June 2021 compared with Rs 174.20 crore in Q1 June 2020. The Q1 result was declared after market hours yesterday, 10 August 2021.

The animal feed segment reported revenue growth of 33.9% YoY in Q1FY22. Demand up-tick in feed categories i.e. cattle, broiler and layer led to strong volume growth.

During the current quarter, the vegetable oil segment revenue grew by 83.5% year-on-year due to increase in Crude palm oil and Palm Kernel oil prices.

In Q1FY22, crop protection (standalone) segment revenues and results grew by 15.4% and 5.9%, respectively, year-on-year driven by higher sale of in-house products over the previous year.

Dairy sales grew by 12.7% driven by volume growth across product categories, albeit on a low base of Q1FY21. However, the demand for milk and milk products was impacted by the micro lockdowns in southern states in Q1FY22.

Godrej Tyson Foods recorded revenues of Rs.177.6 crore in Q1FY22, a growth of 7.3%. However, at the EBITDA level company reported a marginal loss. Low end-product prices on one hand and high input costs on other hand impacted profitability levels.

Commenting on Q1 FY21 performance, B. S. Yadav, the managing director of Godrej Agrovet, said, "I am pleased to share with you the financials of Godrej Agrovet for the quarter ended 30 June 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 2021 onwards with macro-economic indicators improving M-o-M and rainfall in July 2021 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."

Godrej Agrovet is a diversified, Research & Development focused agri-business company. It holds leading market positions in the different businesses in which it operates - animal feed, crop protection, oil palm, dairy and poultry and processed foods.

Shares of Godrej Agrovet shed 1.54% to Rs 668.20 on BSE. The stock has traded in the range of Rs 668.20 to Rs 682 so far.

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