Jammu, August 02, 2023: Godrej Agrovet Limited (“GAVL”) has announced its financial results for the first quarter ended June 30, 2023. The Company reported consolidated revenues from operations of Rs. 2,510.2 crore in Q1 FY24, unchanged from the same period last year.
Q1 FY24 consolidated EBITDA increased to Rs. 206.8 crore from Rs. 169.3 crore in Q1 FY23, a growth of 22% year-on-year. Q1 FY24 Profit before tax increased to Rs. 124.5 crore from Rs. 102.8 crore in Q1 FY23, a growth of 21% year-on-year. EBITDA and Profit before Tax in Q1 FY24 excludes non-recurring item of Rs. 2.3 Crore towards dues in respect of industrial plots; Profit before tax excludes share of profit from associates. Commenting on the performance, Mr. B. S. Yadav, Managing Director, Godrej Agrovet Limited, said: Godrej Agrovet started FY24 with a strong growth in profitability and margin expansion in the first quarter ended June 30, 2023.
While our topline growth was flat, we achieved 21% year-on-year growth to clock Profit before tax of Rs. 124.5 Crore in Q1 FY24. The growth in profitability was driven by the strong performance of domestic Crop Protection, Animal Feed and Poultry businesses. With robust volume growth and improved realizations in HITWEED (in-house herbicide), domestic Crop Protection business achieved a record quarterly topline and profitability in Q1 FY24. Segment results of Crop Protection business improved significantly by 224% in Q1 FY24 as compared to the same period last year.
In Feed business, sustained volume growth in cattle-feed and aqua feed was accompanied by notable recovery in margin profile across categories. Our food businesses maintained volume growth momentum in branded products and delivered margin expansion. In Poultry, revenues from branded products increased by 15% year-on-year led by higher volumes. Lower live bird costs on account of better operational efficiencies boosted profitability as segment EBITDA grew by 50% year-on-year. Dairy business turned EBITDA positive in Q1 FY24.
The higher salience of value-added products coupled with reduction in procurement costs contributed to recovery in margin profile. Astec LifeSciences and Vegetable Oil businesses were adversely impacted by challenging market conditions. The continued demand-supply imbalance and the resultant decline in volumes as well as realizations of key enterprise products led to a sharp drop in Astec’s profitability. Astec’s contract manufacturing business, however, remained on track and its performance was in line with our expectations.
The Vegetable Oil business suffered from correction in end-product prices more than offsetting higher volumes. During the quarter, GAVL commissioned its first downstream project in Vegetable oil business of an edible oil refinery in Andhra Pradesh. The refinery has a capacity of 400 MT per day.