Godrej Agrovet Limited (GAVL) on Tuesday announced its financial results for the first quarter ended June 30, 2023, the company announced through an exchange filing.
Q1FY24 Financial Summary
i) The Company reported consolidated revenues from operations of Rs 2,510.2 crore in Q1FY24, unchanged from the same period last year.
ii) Q1FY24 consolidated EBITDA increased to Rs 206.8 crore from Rs 169.3 crore in Q1FY23, a growth of 22 percent year-on-year.
iii) Q1FY24 Profit before tax increased to Rs 124.5 crore from Rs 102.8 crore in Q1FY23, a growth of 21 percent year-on-year.
While our topline growth was flat, we achieved 21% year-on-year growth to clock Profit before tax of Rs. 124.5 Crore in Q1 FY24. Segment results of Crop Protection business improved significantly by 224 percent in Q1FY24 as compared to the same period last year. Our food businesses maintained volume growth momentum in branded products and delivered margin expansion. In Poultry, revenues from branded products increased by 15 percent year-on-year led by higher volumes. Lower live bird costs on account of better operational efficiencies boosted profitability as segment EBITDA grew by 50 percent year-on-year. Dairy business turned EBITDA positive in Q1FY24, said B. S. Yadav, Managing Director, Godrej Agrovet Limited.
Segment-Wise Business Highlights
Sustained market share gains in Cattle-feed category resulted in overall volume growth in Q1FY24. Cattle-feed volumes surged by 19 percent year-on-year. Significant improvement in segment margin in Q1 as compared to previous year and on a sequential basis on account of softening commodity prices.
Continued volume growth in FFB arrivals was offset by significantly lower crude palm oil prices and marginal decline in Oil extraction ratio. In Q1, GAVL signed Memorandum of Understanding with State Government of Odisha for development and promotion of oil palm cultivation under the National Mission on Edible Oils-Oil Palm (NMEO-OP); total potential is 10,000 acres. GAVL was also allotted potential area of 47,000 Acre in Telangana by the State Government to expand cultivation of Oil Palm.
Crop Protection (Standalone)
Standalone Crop Protection segment delivered record topline and margin performance in Q1 FY24 led by strong volume growth and higher realizations in in-house herbicides portfolio. Robust growth in profitability was accompanied by substantial improvement in the working capital cycle and collections.
Astec continued to face demand-supply imbalance in its enterprise products portfolio in both domestic as well as global markets. Topline and profitability was severely impacted due to sluggish demand, lower realizations and high-cost inventories of enterprise products. CMO revenues grew 3.0x YoY led by new product development while profitability also improved.
Dairy business turned EBITDA positive in Q1FY24 led by buoyant margin performance across categories and sustained volume growth in Value-added products (VAP).
VAP revenues grew by 20 percent year-on-year in Q1 with higher volumes as well as realizations; salience of VAP increased to 42 percent of total sales in Q1FY24 from 38 percent, a year ago. Lower raw material costs aided by mini flush witnessed in the key procurement markets led to significant improvement in margin profile.
Godrej Tyson Foods Limited
GTFL recorded excellent all-round performance in Q1FY24 with topline and profitability growth across categories. Healthy volume growth in branded business, mainly Real Good chicken (18% year-on-year) and lower raw material costs lifted profitability in Q1FY24; GTFL continued with new product launches under Yummiez portfolio. Live bird business delivered sustained efficiency improvement, thereby contributing to improved margin profile.
ACI Godrej Agrovet Private Limited, Bangladesh
ACI Godrej posted revenue growth of 15 percent year-on-year (in local currency terms) in Q1, driven largely by higher realizations.