Godrej Agrovet Ltd reported a 38 per cent decline in net profits for the September quarter at ₹ 69.6 crore over the same period last year’s ₹112.2 crore due to volatile commodity prices. Revenues for the quarter were up 13.5 per cent at ₹2,445.3 crore over same period last year’s ₹2,154.1 crore.

“Q2 FY23 was a mixed bag as we achieved solid topline growth of 13.6 per cent in Q2 FY23 and 19.4 per cent in H1 FY23 over the corresponding previous periods. However, profitability was impacted due to commodity price volatilities, sustained cost inflation, limited transmission and unfavourable macro environment,” said B S Yadav, Managing Director, Godrej Agrovet, in a statement.

Net profits for H1FY23 were down 27.5 per cent at ₹157.3 crore over the same period as last year’s ₹217 crore. The first half revenues were up 19.4 per cent at ₹4,955.2 crore (₹4,146.9 crore).

“Uneven monthly, as well as geographic spread of south-west monsoon, led to lower sowing of kharif crops, mainly paddy and foodgrains. Prices of rice bran jumped sharply in Q2 due to strong demand while maize prices continued to trend higher. Crude palm oil prices, after reaching record levels in May’22, corrected sharply owing to high inventories in two key exporting countries – Indonesia and Malaysia coupled with resumption of supplies post lifting of the exports ban. In the dairy sector, milk procurement prices continued to increase further with limited transmission. For the poultry sector, Q2 is a seasonally weak quarter due to festive season resulting in a sharp decline in live bird prices,” Yadav said.

The animal feed sales during the quarter were up 5.7 per cent at 3.569 lakh tonnes (3.376 lakh tonnes). Revenue from the animal feed segment were up 7.6 per cent at ₹1,220 crore (₹1,134 crore).

“Our animal feed business successfully maintained volume growth momentum and achieved sequential improvement in margin profile. Oil palm business recorded double-digit volume growth which was offset by a drop in oil prices. Standalone Crop Protection business was impacted by reduced application of plant growth regulators and insecticides coupled with input cost pressure. However, the business registered marked improvement in working capital profile as a result of continued focus on credit hygiene practices,” Yadav said.

Astec LifeSciences continued to report strong year-on-year topline growth backed by higher volumes and realisations. “Both of our food businesses continued to report strong volume growth year-on-year. Our dairy subsidiary, Creamline Dairy recorded 27 per cent year-on-year topline growth driven by robust volumes under the value-added products portfolio. Profitability was impacted by limited transmission of higher procurement costs. Poultry and processed food business continued with strong volume growth led by RGC and Yummiez categories while bottom line was impacted by seasonally weak live bird prices,” he added.