Profit before tax for Q3 FY24 decreased to Rs 102.01 crore, down 31.07% from Rs 147.99 crore in Q3 FY23.
In the third quarter of fiscal year 2024, the consolidated EBITDA rose to Rs 170.7 crore, marking a 6.9% YoY growth compared to Rs 159.6 crore in the third quarter of fiscal year 2024.
In the animal feed category, the company sustained growth in cattle feed volumes (up 8% YoY) was partly offset by lower poultry feed sales. Animal Feed segment achieved highest ever quarterly volume in Q3 FY24.
In the vegetable oil segment, lower end-product prices and 4% drop in fresh fruit bunch (FFB) arrival volumes impacted topline and profitability in Q3 FY24. However, oil extraction ratio improved on YoY basis.
The standalone crop protection maintained strong growth momentum in the third quarter as well. Topline and margin growth in Q3 FY24 was driven by higher sales of in-licensed portfolio and plant growth regulators (PGR) products coupled with lower returns as compared to previous year.
Astec LifeSciences’ revenues and margins sustained weakness in key enterprise products as compared to same period last year. However, contract manufacturing (CMO) business margins continued to improve.
The dairy business achieved robust improvement in segment margin led by significant operational efficiencies and lower raw material costs.
Godrej Tyson Foods revenues and profitability were impacted by sharp drop in live bird prices on account of excess supply in Q3 FY24 over Q3 FY23.
ACI Godrej Agrovet in Bangladesh saw a 1.7% revenue growth on YoY basis during the period under review.
Commenting on the performance, B. S. Yadav, managing director, Godrej Agrovet, said, “Godrej Agrovet reported a strong 26% YoY growth in profit after tax in Q3 FY24, primarily led by domestic crop protection and dairy businesses. While revenue growth was flat, EBITDA margin continued to improve. Excluding Astec LifeSciences, growth in profit after tax was even higher at 65% in Q3 FY24. Astec’s enterprise business has been facing extremely challenging external market conditions which have severely impacted its topline and margin performance.
Domestic Crop Protection business continued to deliver robust and consistent financial performance, with an excellent growth of 73% in topline and a segment margin of 30% in Q3 FY24. This was primarily driven by in-licensed portfolio as well as key plant growth regulator (PGR) category products. Food businesses also delivered healthy volume growth in branded products along with sustainable margin expansion.
Dairy business remained on a strong recovery path and achieved significant improvement in segment margin in Q3 FY24. This was primarily driven by operational efficiencies, lower procurement costs and a rising share of value-added products. Poultry business maintained volume growth in branded products of 15% YoY in Q3 as well while sustaining improved operational efficiencies. However, volume performance was offset by sharp drop in live bird prices which impacted profitability.
In Feed business, sustained volume growth in cattle-feed was offset by slightly lower poultry feed and flat aqua feed volumes. Vegetable oil business profitability was impacted by lower end-product prices coupled with drop in fresh fruit bunch (FFB) volumes. Astec LifeSciences continued to witness realization and demand headwinds in enterprise products on account of inventory glut across key markets.”
Godrej Agrovet is an agri-business company in India that focuses on research and development to improve the productivity of Indian farmers. It offers a range of products and services to increase crop and livestock yields sustainably. The company is a leader in various sectors, including animal feed, crop protection, oil palm, dairy, poultry, and processed foods.