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Godrej Agrovet Q2 PAT slips 12% to Rs 116 cr

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Capital Market
Last Updated : Nov 05 2020 | 11:31 AM IST

The company's consolidated net profit jumped 12.5% to Rs 115.51 crore on 7.4% decline in net sales to Rs 1,710.90 crore in Q2 September 2020 over Q2 September 2019.

Profit before tax (PBT) surged 84.4% to Rs 150.05 crore in Q2 September 2020 as against Rs 81.38 crore in Q2 September 2019. Tax expense for the quarter soared 77.5% to Rs 32.90 crore as against Rs 18.53 crore in Q2 September 2019. The Q2 result was declared post market hours yesterday, 4 November 2020.

Consolidated EBITDA jumped 34.8% to Rs 176.70 crore in Q2 September 2020 over Rs 131.10 crore in Q2 September 2019.

In Yummiez segment, the company's products continue to receive excellent customer response across product categories. The firm's market share in the non-vegetarian frozen food segment and in the vegetarian frozen food segment was 28.5% and 7.9%, respectively, in H1FY21 (23.0% and 5.6% respectively in FY20).

Commenting on the Q2 performance, B. S. Yadav, the managing director of Godrej Agrovet, has said that: "I am pleased to share that Godrej Agrovet had an excellent half-yearly performance in the financial year 2020-21, with our consolidated profit before tax growing by 43.7% year-on-year. This is despite an 8.1% year-on-year decrease in total income in the first half. Our frozen food products portfolio under the brand Yummiez witnessed strong demand in the first half. Also, live bird prices continued to trend upward and the raw material prices were favourable. This resulted in sharp recovery in Godrej Tyson Foods and company posted EBITDA of Rs 30.50 crore in first half compared to a loss in the previous year. In the dairy segment, volumes and sales have been adversely impacted, resulting in revenue and EBITDA decline of 20.7% and 6.4%, respectively in the first half of the year."

"While the demand from institutional segments and out-of-consumption remains subdued, the economic activity has started picking up across sectors, with agricultural sector growing ahead of the other sectors. Macroeconomic indicators for the agriculture sector are positive with timely and above normal south-west monsoon, high water reservoir levels and favourable commodity prices. In addition, multiple measures announced in the Government's stimulus package and recent farm bills are big positive for the agriculture sector in long-run. This will encourage private sector participation in the sector and will help increase income for the farmer. We believe that in the near-to-medium term, agricultural value chain will offer immense business opportunities for growth and expansion. Godrej Agrovet, with its presence across multiple segments in agriculture and strong balance sheet, is well placed to capture these opportunities," he added.

Shares of Godrej Agrovet fell 1.45% to Rs 516.10 on BSE.

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Godrej Agrovet is a diversified, Research & Development focused agri- business company. It holds leading market positions in the different businesses in which it operates - Animal Feed, Crop Protection, Oil Palm, Dairy and Poultry and Processed Foods.

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First Published: Nov 05 2020 | 10:58 AM IST

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