Q1 2025 Godrej Agrovet Ltd Earnings Call Transcript
Key Points
- Godrej Agrovet Ltd (NSE:GODREJAGRO) reported a 36% increase in profit before tax, excluding nonrecurring items, reaching INR169 crores compared to INR124 crores in Q1 FY '24.
- The Animal Feed segment saw a significant margin improvement from 4.2% in Q1 FY '24 to 6.8% in Q1 FY '25, driven by favorable commodity positions.
- The Crop Protection segment experienced strong growth, with margins improving from 32% in Q1 FY '24 to 45% in Q1 FY '25, due to higher realization in herbicide and pesticides categories.
- The Dairy segment demonstrated robust margin expansion, with EBITDA margins improving by 490 basis points, driven by operational efficiency gains and an improved milk spread.
- The company is seeing positive developments in its CDMO business, with expectations of 50% to 60% year-on-year growth over the next 2 to 3 years.
- Consolidated revenue from operations declined to INR2,351 crores in Q1 FY '25 from INR2,510 crores in Q1 FY '24.
- The Vegetable Oil segment faced challenges due to lower Fresh Fruit Bunch arrivals and lower Oil Extraction Ratio, impacting revenues and margins.
- Astec Lifesciences experienced pricing pressures and demand headwinds in the Enterprise Products business, leading to inventory write-downs and margin compression.
- The Poultry segment recorded a decline in revenues due to lower volumes in the live bird business as the company focused on branded business.
- The joint venture in Bangladesh, ACI Godrej, saw a 13% revenue decline year-on-year in Q1 FY '25, due to volume contraction and pricing pressures amid a challenging political and economic environment.
Ladies and gentlemen, good day, and welcome to the Godrej Agrovet Q1 FY '25 Earnings Conference Call hosted by Kotak Institutional Equities. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Abhijit. Thank you, and over to you, sir.
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Thank you, Sejal. Good afternoon, everyone, and thank you for joining us on the Godrej Agrovet Q1 FY '25 Earnings Conference Call. From the company, we have with us Mr. Nadir Godrej, Chairman of the company; Mr. Balram Yadav, Managing Director; Mr. S. Varadaraj, Chief Financial Officer; and Mr. Anurag Roy, Chief Executive Officer of Astec Lifesciences.
We'll begin the call with brief opening remarks from the management, following which we'll have the forum open for an interactive Q&A session. Before we start, I would like to highlight that some statements made on today's call may be forward-looking in nature, and a disclaimer to this effect has been
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