Godrej Agrovet Q4 PAT skids 8% to Rs 63 cr

Godrej Agrovet's consolidated net profit slipped 8.4% to Rs 63.4 crore on 2.4% fall in net sales to Rs 1,455.25 crore in Q4 FY21 over Q4 FY20.

On a consolidated basis, reported EBITDA fell 14.1% to Rs 122.20 crore in Q4 March 2021 compared with Rs 142.20 crore in Q4 March 2020. EBITDA margin stood at 8.3% in Q4 FY21 as against 8.7% in Q4 FY20.

For the year, the company's net profit rose 15.6% to Rs 347.60 crore on 10% decline in total income to Rs 6,306.30 crore in the year ended March 2021 (FY21) over the year ended March 2020 (FY20). Reported EBITDA rose 12.7% to Rs 603.30 crore in FY21 compared with Rs 535.30 crore in FY20. EBITDA margin stood at 9.6% in FY21 as against 7.6% in FY20.

The firm reported net debt of Rs 939.30 crore as on 31 March 2021, higher than net debt of Rs 581.60 crore as on 31 March 2020.

Commenting on the Q4 performance, B. S. Yadav, the managing director (MD) of Godrej Agrovet, said: "It was an excellent year for the company as we increased profitability in most of our segments. Animal feed segment results grew by 24.1% year-on-year, despite a 12.6% and 16.8% decline in volumes and sales. Consolidated segment revenues and segment results in crop protection grew by 4.0% and 7.6%, respectively, supported by Astec LifeSciences' robust performance. It was one of the best years for our poultry and processed foods focused subsidiary Godrej Tyson, as it reported 16.9% revenue growth and EBITDA of Rs 41.9 crore compared to an EBITDA loss in the previous year. Though volumes and sales in our dairy subsidiary Creamline dairy were impacted by the lockdown, EBITDA grew by 20.3% supported by low procurement prices. However, the vegetable oil segment was impacted by the white-fly attack which lowered FFB arrival and oil content in the fruit. Therefore, segment results declined by 6.3% during the year."

"The second wave of COVID-19 in India is more severe and has caused a high degree of turmoil and uncertainty. Micro-lockdowns announced by various states have disrupted demand and supply and if prolonged, it could derail the economic recovery expected in the financial year 2021- 22. However, we believe that as the vaccination program gains traction, business activity will normalize in the coming months. Agriculture sector is relatively more resilient and early macro indicators with the expectation of a good monsoon look promising. However, the demand from the HoReCa segment and out-of-home consumption continues to remain subdued. At Godrej Agrovet, we have quickly adapted to the changing situation and all our manufacturing plants are operational along with ensuring utmost safety for our employees and business partners. We are also ensuring adequate raw material stocking to avert production disruptions which can be caused by supply chain or logistics issues. Further, our balance sheet remains strong and our liquidity position is comfortable," he added.

The board has recommended a final dividend of Rs 8 per share for the FY 2020-21.

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 rose 0.63% to Rs 514.85 on Friday.

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