Standalone profit before tax was Rs.102 crore which was lower as compared to the previous year by 7.0%

For the first quarter ended June 30, 2019, company reported standalone total income of Rs.1,262 crore which reflects growth of 13.3%. Standalone profit before tax was Rs.102 crore which was lower as compared to the previous year by 7.0%.

Commenting on the performance of the 1QFY20, Mr. B. S. Yadav, Managing Director, Godrej Agrovet Limited, said, “I am pleased to share the financials of Godrej Agrovet for quarter ended June 30, 2019. Godrej Agrovet Limited’s consolidated total income registered growth of 15.1% and consolidated profit before tax was Rs.113 crore.”

“The animal feed segment registered a year-on-year volume growth of 6.5% in this quarter with a strong growth of 17.2% in segment results. Crop protection segment consolidated revenue grew by 11.6% over 1QFY19. However, segment results were flat on account of poor realization. The performance of the vegetable oil segment was adversely impacted by sharp decline in end product prices and lower oil content due to extended summer and extreme heat. Consequently, segment revenue and profits were lower by 13.6% and 64.5% respectively. In the dairy segment, profitability levels improved in the current quarter as there was no butter provisioning/losses which registered a strong growth in EBITDA of 124.3%.”

“Currently, the Indian agricultural value chain offers immense business opportunities to enhance productivity as practices are largely unorganized. We believe that at Godrej Agrovet we are well placed to capitalize on these opportunities given our presence across underpenetrated & unorganized segments of the agri value chain and our strong focus on research and development. The primary elements of our business strategy are to continue to grow our existing market share, leverage synergies between our businesses and opportunistically evaluate inorganic opportunities.”

Segment-wise business highlights

Animal Feed

• Volume growth of 6.5% in 1QFY20, mainly driven by layer and fish feed segments.
• Price increase taken for end products resulted in strong improvement in segment profitability which has increased by 17.2%.

Vegetable Oil

During the current quarter, segment revenue was lower by 13.6% year-on-year due to sharp decline in crude palm oil and palm kernel oil prices and lower oil content due to delayed monsoon resulting in an extended summer. Consequently, segment results were lower by 64.5% year-on-year.

Crop Protection

• Consolidated segment revenue recorded growth of 11.6% year-on-year during the current quarter whereas segment profit remained flat at Rs.77 crore.
• Recent launches of new products across categories is expected to contribute to revenue and profit growth in the near-term.

Dairy

• For 1QFY20, segment revenue remained flat at Rs.320 crore. However, EBITDA has improved by 124.3% year-on-year as no butter provisioning/losses were recorded in the current quarter.
• New product launches in FY19 were – 2 new variants in flavoured milk category and 1 variant in ice-cream.

Godrej Tyson Foods Limited 

Revenue grew by 9.8% year-on-year during the current quarter. However, EBITDA was lower by 34.4% as compared to previous period mainly on account of increase in cost of live birds.

ACI Godrej Agrovet Private Limited, Bangladesh

The joint venture reported revenues of Rs.222.21 crore for the current quarter compared to revenues of Rs.161.1 crore for the previous period registering a strong growth of 38%.