Godrej Agrovet reports 23% rise in Q1 PAT, shares rise 2%

Revenue declined 6.4% YoY during the quarter to ₹2,351 crore while earnings before interest, tax, depreciation, and amortization (EBITDA) rose 15.2% to ₹235 crore. EBITDA margin improved to 10% during the quarter as compared to 8.2% in the same period a year ago.

BS Yadav, Managing Director at Godrej Agrovet stated that the growth in profitability was primarily driven by robust volumes and improved realisations in the domestic crop protection business and margin expansion in the animal feed and dairy businesses.

“Astec LifeSciences was adversely impacted by challenging market conditions. The continued pricing and demand headwinds in the enterprise products resulted in lower volumes and also necessitated write down of inventories,” he said.

The firm said its segment margins in the domestic crop protection business improved significantly from 32% in Q1FY24 to 45% in Q1FY25 due to robust volume growth and higher realisations across most categories. The segment results witnessed strong growth led by higher realisations in in-house herbicide and pesticides categories.

In the animal feed business, segment margins improved remarkably due to favourable commodity positions while the volume growth was hit due to subdued milk prices and lower placements, the firm said.

Meanwhile, profitability of the dairy business improved significantly on a YoY basis due to consistent improvement in operational efficiencies and improved milk spread. EBITDA margin improved considerably by about 490 basis points in the first quarter due to significant improvement in operational efficiencies and improved milk spread.

The vegetable oil segment revenues came in lower due to lower fresh fruit bunch (FFB) arrivals by 9% and lower opening stock in Q1FY25.

Godrej Agrovet is a diversified, research and development focused agri-business company with a pan India presence with sales of over a million tons annually of high-quality animal feed.

Shares of the firm rose nearly 50% since the beginning of the year. The stock has gained over 72% in the last one year.