Godrej Agrovet advanced 1.62% to Rs 457.10 after the godrej group company reported 78.9% jump in consolidated net profit to Rs 116.42 crore in Q3 FY23 from Rs 65.06 crore in Q3 FY22.
Revenue from operations increased to Rs 2,323.5 crore in the quarter ended 31 December 2022, registering a growth of 12% YoY.The Animal Feed segment reported its highest-ever quarterly volume in Q3 FY23, mainly led by Cattlefeed category (up 15% in Q3 and up 14% in 9M) on account of market share gains. The segment margin recovered to Rs 1,507 per million tonne in Q3, higher by 5% YoY driven by better realizations.
The Oil Palm Business segment's revenues fell by 5.9% YoY to Rs 362.5 crore in Q3 FY23. While volume growth remained robust YoY, sharp decline in crude palm oil prices impacted topline as well as profitability.
The Crop Protection Business recorded revenue of Rs 99.2 crore in Q3 FY23, up 119% YoY. Topline growth in Q3 was led by higher sales of in-licensed products, mainly GRACIA and lower returns as compared to previous year. Unfavorable product mix due to reduced application opportunities impacted profitability, said the company.
Astec Lifesciences revenue was Rs 117.2 crore in Q3 FY23, down by 32.4% from Rs 173.4 crore in Q3 FY22. The topline performance during the quarter was impacted due to lower demand for key products on account of high inventories and reduced realisations from last year's high base. EBITDA margin contracted in Q3 FY23 to 13.6%, on account of lower realisations for key enterprise products while input costs were largely unaffected.
Creamline Dairy reported 20.9% YoY growth in revenue to Rs 347.8 crore in Q3 FY23. Sustained volume growth in both value-added products (up 19% YoY) and milk (up 5% YoY) in Q3 FY23 drove overall revenue growth. However, higher increase in milk procurement costs as compared to that of selling prices has impacted margin profile.
The revenue of Godrej Tyson Foods rose by 38% YoY to Rs 280.5 crore in Q3 FY23, driven by sustained volume growth in branded coupled with recovery in live bird prices. Branded categories, Real Good Chicken (RGC) and Yummiez achieved volume growth of 45% and 46% YoY, respectively.
Consolidated reported EBITDA grew 66% YoY to Rs 159.6 crore in Q3 FY23. EBITDA margin stood at 9.2% in Q2 FY23 as compared to 6.2% in Q2 FY22.
Profit before tax surged by 85.2% to Rs 147.99 crore in Q3 FY23 from Rs 79.90 crore in Q3 FY22.
B S Yadav, managing director, Godrej Agrovet, said: Godrej Agrovet maintained robust volume growth in Q3 and 9M FY23 with increase in topline of 12% YoY in Q3 and 17% YoY in 9M FY23 over the corresponding previous periods. However, on the margin front, it was a challenging quarter for some of the businesses on account of adverse sectorspecific macro conditions, unfavorable commodity price movements and limited transmission of input cost inflation.
Delayed Rabi sowing due to extended monsoon withdrawal, lower instances of pest infestation and higher channel inventories impacted domestic agrochemicals demand. Crude palm oil prices further corrected in Q3 FY23 with increased supplies from world's largest exporters Indonesia and Malaysia. Strong recovery in live bird prices in Q3, post seasonally weak second quarter, supported profitability of Poultry sector.
Meanwhile, the board of directors has approved the proposal to raise funds through issuance of non-convertible debentures upto Rs 50 crore for expansion and development of business operations of the company and meeting the short term and long-term financial requirements of the company.
Godrej Agrovet, part of the Godrej Group, has presence across the animal feed, palm oil, crop protection, dairy and poultry and processed foods segments with about 30 plus facilities and a wide distribution network across the country.
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