On the other hand, total revenue from operations declined 6.35% year on year to Rs 2,350.75 crore in the quarter ended 30 June 2024.
Profit before tax for Q1 FY25 increased to Rs 168.9 crore, up 36% from Rs 124.5 crore in Q1 FY24.
During the quarter, the consolidated EBITDA jumped to Rs 253.7 crore, registering a growth of 22.73% as compared to Rs 206.7 crore reported in Q1 FY24. EBITDA margin improved to 10.8% in the June quarter as against 8.2% recorded in the corresponding quarter previous year.
The company said that the EBITDA and profit before tax in Q1 FY25 excluded write down of inventories in Astec LifeSciences of Rs 18.3 crore.
B. S. Yadav, managing director, Godrej Agrovet, said, Godrej Agrovet continued to demonstrate strong growth in profitability and margin expansion in the first quarter of FY25. The growth in profitability was mainly driven by robust volumes & improved realisations in the domestic Crop Protection business and margin expansion in Animal Feed and Dairy businesses.
In the domestic Crop Protection business our segment margins improved significantly from 32% in Q1 FY24 to 45% in Q1 FY25 due to robust volume growth and higher realizations across most categories. In our Animal Feed business our segment margins improved remarkably due to favorable commodity positions while the volume growth was impacted due to subdued milk prices and lower placements.
Profitability of the Dairy business improved significantly as compared to Q1 FY24 due to consistent improvement in operational efficiencies and improved milk spread. In our Poultry business, volumes from branded products increased by 17% year-on-year and revenues declined primarily due to lower volumes in live bird business as business continued to focus on branded products.
Astec LifeSciences was adversely impacted by challenging market conditions. The continued pricing and demand headwinds in the enterprise products resulted in lower volumes and also necessitated write down of inventories. Deferral in execution of CDMO orders further compressed margins and led to a sharp drop in Astec’s profitability. Vegetable Oil business suffered from fall in Fresh Fruit Bunch (FFB) arrivals and lower Oil Extraction Ratio (OER).”
Meanwhile, the company’s board has approved the execution of a share purchase agreement with Tyson India Holdings (seller), and Godrej Tyson Foods (GTFL) for acquisition of 97,461 equity shares of Godrej Tyson Foods, i.e., 49% of the share capital of GTFL from the seller and other incidental matters, making GTFL a wholly owned subsidiary of the company. The cost of the acquisition is approximately Rs 322.8 crore and it is expected to be completed on or before 31 August 2024.
Further, the board has also given a green light for an initial investment of upto Rs110 crore to set up a new feed plant in Maharashtra. The project is proposed to be funded through a mix of internal accruals and debt, if need be.
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.