Godrej Agrovet (GODREJAGRO) Q4 19/20 earnings summary

Executive summary

• FY20 total income rose 17.4% YoY to ₹7,011 crore; consolidated profit after tax fell to ₹300.58 crore from ₹349.33 crore, reflecting pressure in food businesses and poultry losses.

• Feed businesses and Astec LifeSciences performed strongly, while oil palm, dairy and poultry faced lower profitability or losses; COVID-19 disrupted volumes, prices and operations late in the year.

• Essential-goods operations resumed across factories in April 2020 after approvals; near-term outlook remained uncertain, with agriculture expected to be more resilient than other sectors.

Financial highlights

• Standalone revenue from operations was ₹5,118.68 crore vs ₹4,336.71 crore; EBITDA ₹462.59 crore vs ₹388.10 crore; PAT ₹293.31 crore vs ₹207.88 crore.

• Consolidated revenue from operations was ₹6,964.04 crore vs ₹5,917.73 crore; EBITDA ₹535.30 crore vs ₹508.94 crore; PBT before exceptional items and tax ₹358.55 crore vs ₹389.00 crore.

• Consolidated PAT was ₹300.58 crore vs ₹349.33 crore; EPS ₹15.94 vs ₹16.99. Exceptional items were a ₹9.92 crore loss, mainly poultry inventory write-offs and biological-asset valuation losses.

• Standalone EPS increased to ₹15.27 from ₹10.68; total income reached ₹5,159.69 crore vs ₹4,394.90 crore.

Outlook and guidance

• FY21 economic visibility was low; agencies expected Indian GDP contraction, while agriculture was expected to be comparatively resilient and recover faster as activity resumed.

• Positive agricultural indicators included high reservoir levels, improved soil moisture, remunerative crop prices and an IMD normal monsoon forecast of 102% of LPA, with rainfall distribution remaining critical.

• Medium-term priorities include deeper feed-market penetration, digital analytics and automation, broader crop-protection products, higher value-added dairy and oil-palm yields, and international agrochemical contract manufacturing.

• Labour availability at factories and pandemic-related supply-chain disruption were near-term constraints; business continuity plans and a diversified portfolio were positioned to support adaptation.