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May 9
Godrej Agrovet Ltd (GAVL) reported a 70.2 per cent growth in net profits at ₹110.8 crore for the quarter-ended March 2022, over ₹65.1 crore reported in the same period last year. Revenues for the quarter were up 42.3 per cent at ₹2,080.8 crore over same period last year’s ₹1,462.5 crore.
For the entire financial year 2021-22, GAVL reported an 18.5 per cent growth in net profits at ₹408.5 crore(344.7 crore in FY21) . Revenues for fiscal were up 32.7 per cent at ₹8,306.1 crore( ₹6,257.1 crore).
Strong volume growth
B S Yadav, Managing Director, GAVL said the financial year 2021-22 augured well for Godrej Agrovet in terms of top line growth with sustained rise in profitability. Most of our businesses registered a strong volume growth with the exception of our standalone crop protection segment. “Growth in profitability was largely driven by animal feeds, vegetable oil and Astec LifeSciences, while crop Protection and food businesses reported a decline in operating margin,” Yadav said.
GAVL shares ended marginally higher at ₹526.85 on the BSE in a weak market.
The animal feed business recorded double-digit growth in volumes in all the four quarters on the back of new product launches and increasing market penetration. GAVL’s vegetable oil business reaped benefits of higher oil prices and improved efficiency levels throughout the year as segment results grew by 2.9 times year-on-year.
“For standalone crop protection business, it was a very challenging year on account of an erratic and uneven monsoon. This restricted product application opportunities in the peak season. This was further impacted by higher sales returns and increased provision for doubtful debts as we focused on channel hygiene,” Yadav said.
Astec LifeSciences reported another year of outstanding growth, with increase in total revenues by 22.1 per cent and profit before tax by 36 per cent, year-on-year. The higher realisations in exports were supported by favourable product mix and operational efficiencies.
“In our food businesses, strong volume growth was offset by margin pressures on account of unprecedented input costs inflation. Our dairy subsidiary, Creamline Dairy achieved notable market share gains in key value-added products registering 13.8 per cent topline growth. However, margins declined owing to challenges in passing on increase in milk procurement, logistics and packaging costs. Similarly, for poultry and processed food business, favourable demand dynamics in Real Good Chicken (RGC) and live bird sub-segments were offset by volatile live bird prices and elevated commodity inflation throughout the year,” Yadav said in a statement.
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