Godrej Agrovet (GODREJAGRO) Q4 18/19 earnings summary

Executive summary

• FY19 consolidated total income, excluding non-recurring income, grew 12.6% YoY; profitability before exceptional items was similar to FY18 amid high raw material prices.

• Diversified businesses supported growth despite weak monsoon conditions; animal feed, vegetable oil and crop protection contributed to revenue gains.

Financial highlights

• Consolidated revenue from operations was ₹5,870.74 crore vs ₹5,205.91 crore; EBITDA ₹508.95 crore vs ₹474.84 crore.

• Consolidated PBT before exceptional items and tax was ₹389.00 crore vs ₹359.70 crore; reported PBT ₹477.30 crore vs ₹371.75 crore.

• Consolidated PAT rose to ₹349.33 crore from ₹251.04 crore; basic and diluted EPS were ₹16.99 vs ₹12.02.

• Standalone revenue from operations was ₹4,286.41 crore vs ₹3,691.73 crore; EBITDA ₹388.09 crore vs ₹366.52 crore; PAT ₹207.88 crore vs ₹190.86 crore.

Outlook and guidance

• IMD forecast a normal FY20 monsoon at 96% of LPA, with a model error of +/-4%; a well-distributed monsoon was expected to support agriculture.

• Priorities include gaining share in existing verticals, investing in R&D and new technologies, broadening product portfolios and pursuing inorganic growth opportunities.

• Animal feed margin improvement from efficiency and nutrition innovation was expected in the near-to-medium term; Astec planned capacity expansion and further backward integration.

• New vegetarian ready-to-eat products from the Ludhiana facility were planned for FY20; dairy strategy emphasizes value-added products, cow milk and direct farmer procurement.