Godrej Agrovet (GODREJAGRO) Q4 17/18 earnings summary

Executive summary

• FY18 sales rose 6%; PBT excluding non-recurring and exceptional items increased 11% YoY, despite lower commodity prices and GST-related revenue pressure in some businesses.

• IPO was oversubscribed 96 times; shares listed on NSE and BSE on October 16, 2017.

• Growth priorities: expand existing businesses, use cross-business synergies, invest in R&D and innovation, and assess inorganic opportunities selectively.

Financial highlights

• Consolidated FY18 revenue from operations was ₹520,591.21 lakh vs ₹492,640.18 lakh; total income was ₹523,772.60 lakh vs ₹498,540.14 lakh.

• Consolidated PBT before exceptional items was ₹35,969.28 lakh vs ₹35,456.27 lakh; PAT was ₹25,103.80 lakh vs ₹27,291.76 lakh.

• Consolidated EBITDA was ₹47,485.07 lakh vs ₹49,701.17 lakh; standalone EBITDA was ₹36,650.81 lakh vs ₹37,754.21 lakh.

• Standalone revenue from operations was ₹369,172.72 lakh vs ₹361,785.06 lakh; PBT before exceptional items rose to ₹28,132.50 lakh from ₹26,066.93 lakh.

Outlook and guidance

• A normal 2018-19 monsoon was forecast, supporting expected sector growth; management targeted sustainable and profitable long-term growth.

• Crop-protection demand was expected to grow 8%-9% over the next three years, driven by greater pesticide penetration and higher per-hectare spending.

• Animal feed priorities: cost leadership, operational efficiency and differentiated nutrition products; oil palm priorities: expand regional coverage and improve FFB yields.

• Dairy and poultry plans emphasized wider distribution, larger value-added portfolios and stronger presence in key markets.