Godrej Agrovet Q4FY24 results: Consolidated net profit jumps to Rs 65.48 cr, revenue improves by 1.8%

In the fourth quarter of FY24, the company reported consolidated revenues from operations totalling Rs. 2,134 crore, marking a slight increase of nearly  1.86%   from Rs. 2,095 crore recorded in the corresponding period of the previous fiscal year.

Furthermore, Godrej Agrovet reported a substantial improvement in its consolidated EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization), excluding non-recurring and exceptional items.

The EBITDA stood at Rs. 164 crore in Q4 FY24, significantly higher than the Rs. 76 crore reported in Q4 FY23.

For the full fiscal year FY24, Godrej Agrovet reported consolidated revenues from operations amounting to Rs. 9,561 crore, up from Rs. 9,374 crore recorded in FY23.

The company's consolidated EBITDA for FY24, excluding non-recurring and exceptional items, witnessed a significant uptick, reaching Rs 757 crore compared to Rs. 564 crore in FY23.

"The financial year 2023-34 augured well for Godrej Agrovet in terms of a robust surge in profitability over FY23. This growth in profitability was primarily driven by the exceptional performance of the domestic crop protection business, structural turnaround of the dairy business, market share gains in Animal Feed and robust volume and margin growth in branded products in our poultry business," Godrej Agrovet Managing Director B S Yadav said.

Segmentwise business highlights

Animal Feed

· Sustained growth in cattle feed & fish feed volumes of +11% y-o-y & +19% y-o-y, respectively, was partly offset by lower poultry feed sales resulting in a volume growth of 3% in FY24. Segment margin for FY24 improved considerably as compared to FY23 on account of softened commodity prices and higher realisations in cattle feed & fish feed categories.

·While volumes remained flat year-on-year in Q4FY24, segment margin improved considerably as compared to Q4FY23 due to favorable commodity positions & higher realisations in cattle feed category.

·New products have been launched in Q4FY24 in the cattle feed segment to continue sustained volume growth.

Vegetable Oil

· Lower sales volumes in Q4FY24 on account of lower inventory of Palm Kernel Oil brought forward from the previous quarter (258 MT) as compared to Q4FY23 (2,852 MT) & 7% drop in Fresh Fruit Bunch (FFB) arrival volumes impacted profitability in a seasonally weak quarter. Oil extraction ratio, however, improved sequentially as well as vs. Q4 FY23.

· In FY24, FFB volume growth of 6% was more than offset by lower Crude Palm Oil & Palm Kernel Oil prices which came off record highs of FY23 and normalised during FY24.

·4 new mandals were allotted in the state of Andhra Pradesh in Q4FY24

Crop Protection (Standalone)

·Standalone Crop Protection segment results witnessed strong growth in the fourth quarter as well.

·Stellar performance throughout the year driven by higher sales of in-house and in-licensed portfolio and lower sales returns as compared to FY23 has resulted in topline growth of 36.8% and segment margin of 31% in FY24.

Astec Life Sciences

·Higher salience of contract manufacturing (CMO) and new products in Q4FY24 as compared to Q4FY23 helped improve the topline & margin profile.

·On the product development front, Astec has commercialized new products in Q4FY24 aided by the strong R&D capabilities.

·In terms of FY24 performance, Astec’s contract manufacturing business delivered strong volume and margin performance. However, it was more than offset by subdued performance in enterprise products due to lower realisations and margins on account of severe demand-supply imbalance.

Dairy

·Dairy business has achieved a structural turnaround in its profitability in FY24 as a result of significant improvement in operational efficiencies and improved milk spread. Salience of VAP has improved to 36% of total sales from 32%, a year ago.

·Q4FY24 also witnessed a robust improvement in segment margin led by operational efficiencies and lower procurement costs as compared to Q4FY23. Value-Added Products (VAP) revenues grew by 9% year-on-year in Q4FY24; growth was driven by volumes as well as realizations.

Godrej Tyson Foods Limited (GTFL)

·GTFL’s profitability improved significantly in Q4FY24 driven by higher live bird prices and an increase in volume of branded products vis-à-vis Q4FY23; revenues declined primarily due to lower volumes in live bird business as GTFL continued to focus on branded business & reduce exposure to live bird business.

·In terms of FY24, GTFL has achieved excellent growth in profitability led by higher live bird prices, consistent improvement in volumes and margins of branded products and operational efficiencies.

ACI Godrej Agrovet Private Limited, Bangladesh

·ACI Godrej posted revenue growth of 7% year-on-year in Q4 and 8% year-on-year in FY24, driven by higher realizations as well as volumes. Profitability improved remarkably and was higher by 117% over FY23 on account of lower input costs.