Godrej Agrovet Shares Tumbles Over 4%: Released Q2 FY25 Results

On October 29, 2024, Godrej Agrovet Ltd released its results for the quarter ended September 30, 3024. The company experienced a challenging second quarter, with net profit declining by 7.9% year-on-year to ₹95.8 crore, while revenue fell by 4.6% to ₹2,448.8 crore. 

Q2 FY25 Financial Overview

Despite these setbacks, the company reported a significant improvement in operational efficiency, with EBITDA rising by 13.2% to ₹223.4 crore. Margins also improved, increasing from 7.7% in the previous year to 9.1%, highlighting the company’s commitment to cost management and productivity enhancements. The agribusiness leader faced revenue pressures across various segments amid a competitive landscape. However, the growth in EBITDA indicates resilience within its core businesses, particularly in animal feed and crop protection. 

Management Comments on Q2FY25

Commenting on the performance, Mr B. S. Yadav, Managing Director, Godrej Agrovet Limited, said: Godrej Agrovet continued to deliver robust improvement in profitability with the exception of Astec LifeSciences and Poultry business. EBITDA margins (excluding non-recurring items) improved in Q2 FY25 by ~70 bps and ~130 bps excluding Astec as compared to Q2 FY24. All the segments, with the exception of Astec LifeSciences and the Poultry business, achieved growth in profitability.”

He added, “Domestic Crop Protection business achieved a significant improvement in segment margins, primarily due to lower doubtful debts & control over fixed costs. Topline declined compared to the previous year due to erratic rainfall across key states which resulted in a reduction in spraying opportunities in the herbicides category. Animal Feed business also witnessed a remarkable improvement in segment margins due to favourable commodity positions & cost optimization measures. However, the overall volume growth was impacted by subdued growth in cattle feed due to lower milk prices, while the Layer and Broiler feed grew y-o-y & sequentially.” 

He further stated, “Dairy business continued its upward trajectory, with profitability significantly improving compared to Q2 FY24. Consistent operational efficiency improvements and a favourable milk spread contributed to this improved performance. In the Vegetable Oil business, higher realizations in respect of end products coupled with an improved Oil Extraction Ratio (OER) led to enhanced segment margins in Q2 FY25 compared to the same period the previous year, despite lower FFB arrivals.” 

On October 30, 2024, Godrej Agrovet shares opened at ₹729.45 and touched the day low of ₹711.65 at 09:30 AM.

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