Godrej Agrovet Limited consolidated revenues from operations increased to Rs. 2,323.5 crore from Rs. 2,078.5 crore in Q3 FY23, a growth of 12% year-on-year.
Consolidated EBITDA, excluding non-recurring & exceptional items, increased to Rs. 159.6 crore in Q3 FY23 from Rs. 153.9 crore in Q3 FY22, a growth of 4% year-on-year. Company reported Profit before tax, excluding non-recurring & exceptional items, of Rs. 87.8 crore in Q3 FY23 as compared to Rs. 92.9 crore in Q3 FY22, a drop of 5% year-on-year.
Commenting on the performance, B. S. Yadav, Managing Director, Godrej Agrovet Limited said, "Godrej Agrovet maintained robust volume growth in Q3 and 9M FY23 with increase in topline of 12% y-o-y in Q3 and 17% y-o-y in 9M FY23 over the corresponding previous periods. However, on the margin front, it was a challenging quarter for some of the businesses on account of adverse sector- specific macro conditions, unfavorable commodity price movements and limited transmission of input cost inflation."
"Delayed Rabi sowing due to extended monsoon withdrawal, lower instances of pest infestation and higher channel inventories impacted domestic agrochemicals demand. Crude palm oil prices further corrected in Q3 FY23 with increased supplies from world’s largest exporters – Indonesia and Malaysia. Dairy sector witnessed sustained rise in milk procurement prices with limited transmission. Strong recovery in live bird prices in Q3, post seasonally weak second quarter, supported profitability of Poultry sector," added Yadav.
Crop Protection (Standalone) - Topline growth in Q3 was led by higher sales of in-licensed products, mainly Gracia and lower returns as compared to previous year. Unfavorable product mix due to reduced application opportunities and product rationalization initiatives impacted profitability. Working capital cycle has improved substantially driven by concerted efforts in maintaining credit hygiene.
Astec LifeSciences - Q3 topline performance was impacted due to lower demand for key products on account of high inventories and reduced realisations from last year’s high base.
Exports, accounting for 76% of the revenues, declined by 19% year-on-year in Q3 FY23. Domestic sales, accounting for 24% of revenues, also declined by 55% year-on-year. EBITDA margin contracted in Q3 FY23 on account of lower realisations for key enterprise products while input costs were largely unaffected.
On the ESG front, Godrej Agrovet remained on track to achieve 2025 sustainability targets. The share of renewable energy in the overall energy consumption mix increased to 74% in 9M FY23 as compared to 70% in 9M FY22 with solar roof top/ground mounted system installations at more than 20 manufacturing plants.
During the quarter, we received results for our Climate Disclosure Project (CDP) submission and we are happy to report that our CDP scores related to climate change & forest (palm oil) are ahead of the global averages. Also, our oil palm plantations business was awarded a verification certification under the Indian Palm Oil Sustainability (IPOS) Framework, issued by an independent international certification body. The certification further reinstates the sustainable practices adopted by the company's oil palm business.
