Godrej Agrovet (GODREJAGRO) Q4 22/23 earnings summary

Executive summary

• FY23 consolidated revenue reached ₹9,373.68 crore, up 13% YoY, with volume growth across most businesses; profitability fell amid input-cost pressure and weak conditions in several segments.

• Cash generation and working capital improved sharply; net working capital days fell to 51 from 79, while cash generated from operations was ₹967.34 crore.

Financial highlights

• Consolidated total income was ₹9,481.18 crore vs ₹8,385.74 crore; profit before tax was ₹377.68 crore vs ₹541.57 crore, and PAT was ₹295.36 crore vs ₹419.15 crore.

• Consolidated revenue from operations was ₹9,373.68 crore vs ₹8,306.09 crore; total comprehensive income was ₹290.67 crore vs ₹417.36 crore.

• Operating cash flow was ₹874.02 crore vs an outflow of ₹120.05 crore; cash generated before tax reached ₹967.34 crore vs ₹33.25 crore.

• Headline EBITDA was ₹630 crore in FY23; the 10-year revenue CAGR was 11%, and 10-year EBITDA CAGR was 12.9%.

Outlook and guidance

• Priorities include increasing branded value-added Dairy and Poultry products, scaling Astec contract manufacturing, broadening Crop Protection products and unlocking Palm Oil value-chain margins.

• Astec’s CDMO revenue nearly doubled in FY23; new R&D capabilities are intended to support further contract manufacturing growth and portfolio diversification.

• Vegetable Oil plans to add 60,000 hectares of oil palm plantations over five years and establish 50 Samadhan farmer centres by 2027.

• India GDP growth was projected at 6.0%–6.5% for FY24; the 2023 monsoon outlook was 96% of long-period average, with El Niño risks still evolving.