On a consolidated basis, Godrej Agrovet's net profit jumped 33.1% to Rs 68.09 crore on 14.4% decline in net sales at Rs 1,523.44 crore in Q3 December 2020 over Q3 December 2019.
Profit before tax (PBT) soared 32.6% to Rs 90.11 crore in Q3 December 2020 as against Rs 67.98 crore in Q3 December 2019. Current tax expense for the quarter rose 6.4% to Rs 19.16 crore as against Rs 18.01 crore in Q3 December 2019. The Q3 result was declared after market hours yesterday, 4 February 2021.
EBITDA grew 11.6% to Rs 122.70 crore in Q3 FY21 from Rs 109.90 crore in Q3 FY20. Consolidated EBITDA margin improved to 8.2% in Q3 FY21 as against 6.1% in Q3 FY20.
Commenting on the Q3 performance, B. S. Yadav, the managing director (MD) of Godrej Agrovet, has said that: "With sharp decline in COVID-19 cases in the last few month in India, economy is recovering at a faster- than-expected pace. Agriculture sector has grown ahead of the economy and the near-term prospects are also promising with higher Kharif production, higher Rabi sowing and favourable commodity prices. While couple of sectors are seeing economic activity back at the pre-covid levels, rate of recovery is slower in few other sectors. Demand from the HoReCa segment is still subdued and out-of-home consumption is much lower, however, we expect demand to improve in the near-term."
"In the recent budget, measures announced for the agriculture sector continue to focus on increasing farmer's income and on increasing their access to credit. Government also increased custom duty and cess on import of shrimp feed and crude palm oil which is expected to increase domestic production. We believe that these announcement along with earlier measures implemented by Government to boost agriculture sector will encourage more private sector participation in the sector and will help increase income for the farmer. Agricultural value chain will offer immense business opportunities for growth and expansion in the medium-term. Godrej Agrovet, with its presence across multiple segments in agriculture and strong balance sheet, is well placed to capture these opportunities."
Shares of Godrej Agrovet fell 2.59% to Rs 518.05. 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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