Agricultural products company Godrej Agrovet announced Q1FY23 results: Q1FY23 consolidated total income increased to Rs. 2,517.5 crore from Rs. 2,003.2 crore in Q1FY22, a growth of 25.7% YoY Company reported consolidated EBITDA of Rs. 169.3 crore in Q1FY23 as compared to Rs. 180.0 crore in QFY22 Company reported Profit before tax of Rs. 102.8 crore in Q1FY23 as compared to Rs. 126.2 crore in Q1FY22 Commenting on the performance, Mr. B. S. Yadav, Managing Director, Godrej Agrovet Limited, said: "Godrej Agrovet started financial year 2022-23 with a robust growth in volumes and topline in the first quarter ended June 30, 2022. All of our businesses, with the exception of Crop Protection, registered a strong volume growth. We achieved year-on-year growth of 25.7% to clock total income of Rs. 2,517.5 crore in Q1 FY23. However, it was a challenging quarter in terms of profitability as most of our businesses recorded margin contraction owing to combination of factors such as high cost inventory, input cost inflation, deferment of sales and limited transmission etc. Decline in margin was witnessed in Animal Feeds, Crop Protection and Dairy businesses while Vegetable Oils and Poultry segments reported a growth in operating margin. On Macro front, the arrival of south-west monsoon was late by few weeks and therefore, led to delay in sowing of Kharif crops, especially Cotton. Soymeal prices declined sharply in May 2022 as Government of India allowed import of GM soymeal to the tune of 0.55 million MT. Crude Palm Oil prices reached record high levels in May 2022 owing to three-week exports ban by Indonesian Government, a largest producer and exporter of palm oil. Prices have been gradually correcting since the lifting of exports ban in the last week of May. In Dairy sector, milk procurement prices continued to increase further along with other input costs as well. In Poultry sector, live bird prices were considerably higher than the previous year and remained well above the feed costs. Our Animal Feed business recorded double-digit growth in volumes, however suffered from high cost inventories of key raw materials. Vegetable Oil business continued to reap benefits of higher oil prices and improved efficiency levels as segment results grew by 2.6x year-on-year. Standalone Crop Protection business was impacted by deferred liquidation on account of delayed Kharif sowing and lower placements to maintain channel hygiene. Astec LifeSciences reported another quarter of significant increase in topline; however, growth was constrained by deferment of revenues while margin contraction in one of the products impacted bottomline performance. Both of our Food businesses reported strong volume growth year-on-year. For Poultry and Processed Food business, Q1 was a very good quarter led by favorable demand dynamics in Real Good Chicken (RGC) and significant increase in Live Bird prices throughout the quarter. Our Dairy subsidiary, Creamline Dairy achieved further market share gains in key value-added products registering 47.6% topline growth. However, sustained rise in procurement and packaging costs led to subdued profitability During the quarter, Godrej Agrovet successfully completed submission of Greenhouse Gas (GHG) emissions reduction roadmap target in line with Science Based Target’s (SBTi) “Well Below 20C” scenario. In doing so, GAVL became first Agri company in India to commit to reduction in Scope 1 & Scope 2 GHG emissions by 37.5% and Scope 3 emissions by 16.0% by FY 2035. We also continued to make good progress in achieving 2025 sustainability targets." Result PDF
Other Agricultural Products company Godrej Agrovet declares Q4FY22 result: Q4 FY22 Financial Summary Q4 FY22 consolidated total income increased to Rs. 2,133.9 crore from Rs. 1,472.4 crore in Q4 FY21, a growth of 44.9% YoY Q4 FY22 consolidated EBITDA, excluding non-recurring & exceptional items, increased to Rs. 193.3 crore from Rs. 124.5 crore in Q4 FY21, a growth of 55.3% YoY (reported growth of 82.0% YoY) Q4 FY22 Profit before tax, excluding non-recurring & exceptional items, increased to Rs. 129.6 crore from Rs. 67.4 crore in Q4 FY21, a growth of 92.4% YoY (reported growth of 144.0% YoY) FY22 Financial Summary FY22 consolidated total income increased to Rs. 8,385.7 crore from Rs. 6,306.3 crore in FY21, a growth of 33.0% YoY FY22 consolidated EBITDA, excluding non-recurring & exceptional items, increased to Rs. 723.2 crore in Q4 FY22 from Rs. 598.1 crore in FY21, a growth of 20.9% YoY (reported growth of 23.5% YoY) FY22 Profit before tax, excluding non-recurring & exceptional items, increased to Rs. 486.8 crore from Rs. 397.6 crore in FY21, a growth of 22.4% YoY (reported growth of 26.3% YoY) Commenting on the performance, Mr. B. S. Yadav, Managing Director, Godrej Agrovet Limited, said: The financial year 2021-22 augured well for Godrej Agrovet in terms of top line growth with sustained rise in profitability. We achieved a strong performance clocking highest ever total income of INR 8,385.7 Crore in FY 2021-22, growing at 33.0% YoY while consolidated profit before tax grew by 22.4% YoY. Most of our businesses registered a strong volume growth with the exception of our Standalone Crop Protection segment. Growth in profitability was largely driven by Animal Feeds, Vegetable Oil and Astec LifeSciences, while Crop Protection and Food businesses reported a decline in operating margin. Animal Feed business recorded double-digit growth in volumes in all the four quarters on the back of new product launches and increasing market penetration. Vegetable Oil business reaped benefits of higher oil prices and improved efficiency levels throughout the year as segment results grew by 2.9x YoY. For Standalone Crop Protection business, it was a very challenging year on account of an erratic and uneven monsoon. This restricted product application opportunities in the peak season. This was further impacted by higher sales returns and increased provision for doubtful debts as we focused on channel hygiene. Astec LifeSciences reported another year of outstanding growth, with increase in total revenues by 22.1% and PBT by 36.0%, YoY. Higher realizations in exports were supported by favorable product mix and operational efficiencies. In our Food businesses, strong volume growth was offset by margin pressures on account of unprecedented input costs inflation. Our Dairy subsidiary, Creamline Dairy achieved notable market share gains in key value-added products registering 13.8% topline growth. However, margins declined owing to challenges in passing on increase in milk procurement, logistics and packaging costs. Similarly, for Poultry and Processed Food business, favorable demand dynamics in Real Good Chicken (RGC) and Live Bird sub-segments were offset by volatile live bird prices and elevated commodity inflation throughout the year During the year, Godrej Agrovet also focused on achieving the long-term sustainability targets guided by Group's Good & Green vision. We participated in Climate Disclosure Project’s (CDP) carbon and forests disclosure, becoming one of the first companies in the Indian agriculture sector to do so. GAVL’s CDP scores related to climate & palm submission are ahead of the global averages. We also made a good progress in achieving 2025 sustainability targets such as (a) 69% of energy consumption from clean renewable energy sources as against target of 90% (b) being a water positive company already conserving 6 times more water than the consumption (c) 89% of the total CO2 emissions sequestered as against target of 100% to become a carbon neutral company. Result PDF