Godrej Agrovet, a part of the highly diversified Godrej Group, on Tuesday reported a 22 percent rise in consolidated net profit at Rs 107.08 crore in the quarter ended June 2023. The company's net profit stood at Rs 87.68 crore during the corresponding period of 2022-23, according to a regulatory filing.

Share Market Live

NSE

The agribusiness company's revenue from operations of the company during the quarter under review was almost flat at Rs 2,499.31 crore as against Rs 2,499.08 crore in the year-ago period.

Consolidated EBITDA increased to Rs 206.8 crore in Q1 of FY24 from Rs 169.3 crore in Q1 of FY23, a growth of 22 percent year-on-year, the company said in an official release.

FY24 started with strong growth in profitability, margin expansion in Q1

"Godrej Agrovet started FY24 with a strong growth in profitability and margin expansion in the first quarter ended June 30, 2023. While our topline growth was flat, we achieved 21% year-on-year growth to clock Profit before tax of Rs. 124.5 Crore in Q1 FY24. The growth in profitability was driven by the strong performance of domestic Crop Protection, Animal Feed and Poultry businesses," said BS Yadav, Managing Director, Godrej Agrovet Limited.

"With robust volume growth and improved realizations in HITWEED (in-house herbicide), domestic Crop Protection business achieved a record quarterly topline and profitability in Q1 FY24," Yadav said.

Segment results of Crop Protection business improved significantly by 224 percent in Q1 FY24 as compared to the same period last year. In Feed business, sustained volume growth in cattle-feed and aqua feed was accompanied by notable recovery in margin profile across categories.

"Our food businesses maintained volume growth momentum in branded products and delivered margin expansion. In Poultry, revenues from branded products increased by 15 percent year-on-year led by higher volumes," the MD said.

Lower live bird costs on account of better operational efficiencies boosted profitability as segment EBITDA grew by 50 percent year-on-year. Dairy business turned EBITDA positive in Q1 FY24. The higher salience of value-added products coupled with reduction in procurement costs contributed to recovery in margin profile.

During the quarter, GAVL commissioned its first downstream project in vegetable oil business of an edible oil refinery in Andhra Pradesh. The refinery has a capacity of 400 MT per day.

Shares of Godrej Agrovet Ltd surged 2.52 percent to close at Rs 498.15 apiece on the NSE. The stock gained 5.05 percent so far this year, while it tumbled 1.38 percent in the last one-year period.

First Published:Aug 1, 2023 3:59 PM IST