Godrej Agrovet (GODREJAGRO) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 saw strong profit growth and margin expansion despite a 6.4% year-over-year revenue decline, with profit before tax (excluding non-recurring items) up 36% to INR 169 crore.

• Standalone and consolidated unaudited financial results for the quarter ended June 30, 2024, were approved, with statutory auditors issuing unmodified review reports.

• Board approved acquisition of remaining equity in Godrej Tyson Foods Limited, making it a wholly owned subsidiary.

• Investment of up to ₹110 crore approved for a new feed plant in Maharashtra, to be funded by internal accruals and debt.

Financial highlights

• Consolidated revenue from operations was INR 2,351 crore, down 6.4% year-over-year.

• Profit before tax (excluding non-recurring items) rose 36% year-over-year to INR 169 crore.

• EBITDA grew 15.2% to ₹235 crore; adjusted EBITDA up 22.7% to ₹254 crore.

• PAT increased 22.9% to ₹132 crore; adjusted PAT up 31.1% to ₹143 crore.

• Operating margin improved to 9.62% in Q1 FY25 from 7.7% in Q1 FY24.

Outlook and guidance

• Animal Feed margins expected to remain in the 9%-10% range for coming quarters.

• Crop Protection margins expected to be similar to last year, with in-house and in-licensing products supporting performance.

• CDMO business guided to grow 60%-70% year-over-year, maintaining last year’s run rate.

• New feed plant in Maharashtra expected to enhance production capacity and support future growth.

• Management remains focused on margin improvement and operational efficiencies, with continued investments in branded and value-added products.