Godrej Agrovet on Monday reported a rise of 120.59 per cent in its consolidated profit at Rs 139.81 crore during the quarter ended March 2022 compared to the same period of the preceding financial year.
The company’s profit stood at Rs 63.38 crore during the corresponding period of the previous fiscal, Godrej Agrovet said in a statement.
Revenue from operations of the company went up by 42.62 per cent during the quarter under review at Rs 2,075.62 crore compared to Rs 1,455.25 crore in the same period of the previous fiscal.
For the full year, the company posted a 20.59 per cent growth in profit at Rs 419.15 crore compared to Rs 347.57 crore in FY21.
Revenue from operations of the company in 2021-22 witnessed a growth of 32.90 per cent at Rs 8,292.93 crore compared to Rs 6,239.60 crore in FY21.
“The financial year 2021-22 augured well for Godrej Agrovet in terms of topline growth with sustained rise in profitability. Most of our businesses registered a strong volume growth with the exception of our standalone crop protection segment. Growth in profitability was largely driven by animal feeds, vegetable oil and Astec LifeSciences, while crop protection and food businesses reported a decline in operating margin,” Godrej Agrovet managing director B S Yadav said.
Animal feed business recorded double-digit growth in volumes in all the four quarters on the back of new product launches and increasing market penetration, while vegetable oil business reaped benefits of higher oil prices and improved efficiency levels throughout the year as segment results grew by 2.9 times year-on-year, he added.
However, for standalone crop protection businesses, it was a very challenging year on account of an erratic and uneven monsoon, he said, adding that this restricted product application opportunities in the peak season.
“This was further impacted by higher sales returns and increased provision for doubtful debts as we focused on channel hygiene. Higher realisations in exports were supported by favourable product mix and operational efficiencies. In our food businesses, strong volume growth was offset by margin pressures on account of unprecedented input costs inflation,” he said.
Company’s dairy subsidiary Creamline Dairy achieved notable market share gains in key value-added products, registering a 13.8 per cent topline growth, he said.
However, margins declined owing to challenges in passing on increases in milk procurement, logistics and packaging costs, he added.
For poultry and processed food business, favourable demand dynamics in Real Good Chicken (RGC) and Live Bird sub-segments were offset by volatile live bird prices and elevated commodity inflation throughout the year, Yadav added.
Shares of Godrej Agrovet on Monday closed at Rs 526.85, up 0.20 per cent on BSE.