Conference Call with Godrej Agrovet Management and Analysts on Q2FY25 Performance and Outlook. Listen to the full earnings transcript.
Agricultural Products company Godrej Agrovet announced Q2FY25 results Revenue: Rs 2,449 crore, compared to Rs 2,571 crore during Q2FY24, change -4.8%. EBITDA: Rs 221 crore, compared to Rs 215 crore during Q2FY24, change 2.9%. EBITDA Margin: 9.0% for Q2FY25. Profit before Tax: Rs 123 crore compared to Rs 134 crore during Q2FY24, change -8.3%. PBT Margin: 5.0% for Q2FY25. Profit after tax (PAT): Rs 104 crore compared to Rs 105 crore during Q2FY24, change -1.1%. PAT Margin: 4.3% for Q2FY25. B. S. Yadav, Managing Director, Godrej Agrovet, said: Godrej Agrovet continued to deliver robust improvement in profitability with the exception of Astec LifeSciences and Poultry business. EBITDA margins (excluding non-recurring items) improved in Q2FY25 by ~70 bps and ~130 bps excluding Astec as compared to Q2FY24. All the segments, with the exception of Astec LifeSciences and the Poultry business achieved growth in profitability. Domestic Crop Protection business achieved a significant improvement in segment margins, primarily due to lower doubtful debts & control over fixed costs. Topline declined compared to the previous year due to erratic rainfall across key states which resulted in reduction in spraying opportunities in herbicides category. Animal Feed business also witnessed a remarkable improvement in segment margins due to favorable commodity positions & cost optimization measures. However, the overall volume growth was impacted by subdued growth in cattle feed due to lower milk prices, while the Layer and Broiler feed grew y-o-y & sequentially. Dairy business continued its upward trajectory, with profitability significantly improving compared to Q2FY24. Consistent operational efficiency improvements and a favorable milk spread contributed to this improved performance. In the Vegetable Oil business, higher realizations in respect of end products coupled with an improved Oil Extraction Ratio (OER) led to enhanced segment margins in Q2FY25 compared to same period previous year, despite lower FFB arrivals. Astec LifeSciences topline & profitability was severely impacted due lower realizations in key enterprise products coupled with lower-than-expected volumes in CDMO segment due to cautious approach adopted by CDMO customers. However, gradual uptick in demand resulted in sequential improvement in performance. In a seasonally weak quarter for the Poultry business, while live bird volumes decreased in line with our strategy to focus on branded business, branded volumes improved marginally resulting in shrinking of topline. Profitability was severely impacted due to unfavorable channel & product mix and elevated input cost. Result PDF