Q3 FY24 Profit after tax increased to Rs. 84.6 crore from Rs. 67.0 crore in Q3 FY23, a growth of 26.3% year-on-year
Godrej Agrovet Limited has reported Q3 FY24 consolidated revenue of Rs. 2,345.2 crore as compared to Rs. 2,323.5 crore in Q3 FY23. Q3 FY24 Profit after tax increased to Rs. 84.6 crore from Rs. 67.0 crore in Q3 FY23, a growth of 26.3% year-on-year.
The company reported consolidated revenues from operations of Rs. 7,426.3 crore in 9M FY24 as compared to Rs. 7,278.7 crore in 9M FY23, a growth of 2% year-on-year. 9M FY24 Profit after tax increased to Rs. 299.2 crore from Rs. 224.3 crore in 9M FY23, a growth of 33.4% year-on-year.
Commenting on the performance, B. S. Yadav, Managing Director, Godrej Agrovet Limited said, "Godrej Agrovet reported a strong 26% year-on-year growth in profit after tax in Q3 FY24, primarily led by domestic Crop Protection and Dairy businesses. While revenue growth was flat, EBITDA margin continued to improve. Excluding Astec LifeSciences, growth in profit after tax was even higher at 65% in Q3 FY24. Astec’s enterprise business has been facing extremely challenging external market conditions which have severely impacted its topline and margin performance."
"On a 9M FY24 basis, profit after tax grew by 33% year-on-year. Except Astec and Vegetable Oil, all the other businesses contributed to strong growth in profitability. Godrej Agrovet has also achieved significant improvement in its leverage profile as well as operating cash flows over the past two years. This was attributed to efficient working capital management and steadfast focus on credit hygiene across businesses," commented Yadav.
Domestic Crop Protection business continued to deliver robust and consistent financial performance, with an excellent growth of 73% in topline and a segment margin of 30% in Q3 FY24. This was primarily driven by in-licensed portfolio as well as key plant growth regulator (PGR) category products. Food businesses also delivered healthy volume growth in branded products along with sustainable margin expansion.
Dairy business remained on a strong recovery path and achieved significant improvement in segment margin in Q3 FY24. This was primarily driven by operational efficiencies, lower procurement costs and a rising share of value-added products. Poultry business maintained volume growth in branded products of 15% year-on-year in Q3 as well while sustaining improved operational efficiencies. However, volume performance was offset by sharp drop in live bird prices which impacted profitability.
In the Feed business, sustained volume growth in cattle-feed was offset by slightly lower poultry feed and flat aqua feed volumes. Vegetable oil business profitability was impacted by lower end-product prices coupled with drop in Fresh Fruit Bunch (FFB) volumes. Astec LifeSciences continued to witness realization and demand headwinds in enterprise products on account of inventory glut across key markets.
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