Godrej Agrovet (GODREJAGRO) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 saw strong profitability growth, with profit before tax (excluding non-recurring items) up 36% year-over-year to INR 169 crore and PAT up 31%, despite a 6.4% revenue decline.

• EBITDA grew 23% year-over-year, driven by Crop Protection and Dairy, while statutory auditors issued 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.

• Board approved reclassification of certain promoter group members to public shareholders following a family settlement agreement.

Financial highlights

• Consolidated revenue from operations for Q1 FY25 was ₹2,351 crore, down 6.4% year-over-year.

• EBITDA (excluding non-recurring items) rose 22.7% to ₹254 crore, with margin improving to 10.8%.

• PAT (excluding non-recurring items) increased 31.1% to ₹143 crore, with PAT margin at 6.1%.

• Basic EPS for Q1 FY25 stood at ₹7.09, up from ₹4.48 in Q1 FY24.

• Non-recurring items included inventory write-downs in Astec Lifesciences and VAT amnesty expense.

Outlook and guidance

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

• Crop Protection and Dairy segments are expected to sustain momentum, while Astec Lifesciences and Vegetable Oil face ongoing challenges from demand and climate impacts.

• 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.

• Enterprise product demand expected to recover by year-end, with prices firming up in subsequent quarters.