In This Article:
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EBITDA Margins: Improved by 70 bps overall and by 130 bps excluding Astec LifeSciences compared to Q2 FY24.
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Animal Feed Segment Margins: Increased from 4.6% in Q2 FY24 to 5.9% in Q2 FY25.
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EBIT per Metric Tonne: Rose from INR 1,531 in Q2 FY24 to INR 1,953 in Q2 FY25.
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Crop Protection Segment Margins: Improved from 30% in Q2 FY24 to 43% in Q2 FY25.
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Crop Protection Segment Revenues: Decreased by 24% due to erratic rainfall and higher sales returns.
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Dairy Segment EBITDA Margins: Increased by 140 bps despite a flat top line.
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Poultry Segment Revenue: Declined due to lower volumes in the live bird business.
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ACI Godrej (Bangladesh JV) Revenue: Declined by 6% year on year in Q2 FY25.
Release Date: October 30, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Godrej Agrovet Ltd (NSE:GODREJAGRO) reported an improvement in EBITDA margins by 70 bps in Q2 FY 2025, excluding non-recurring items.
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The animal feed segment saw a significant increase in segment margins from 4.6% in Q2 FY 2024 to 5.9% in Q2 FY 2025 due to favorable commodity positions and cost optimization.
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The standalone crop protection segment experienced strong growth with segment margins improving from 30% in Q2 FY 2024 to 43% in Q2 FY 2025.
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The dairy segment demonstrated margin expansion with EBITDA margins improving by 140 bps, driven by operational efficiency gains.
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The company is confident in achieving a 50% growth in the CDMO business over last year, with expectations of reaching INR 400 crores in revenue.
Negative Points
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Astec LifeSciences faced pricing pressures and lower volumes in the CDMO category, adversely affecting revenue and margins.
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The poultry segment recorded a decline in revenue due to lower volumes in the live bird business and an unfavorable channel and product mix.
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The vegetable oil segment revenues were flat due to lower fresh fruit bunch arrivals, despite higher realizations of end products.
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The joint venture in Bangladesh, ACI Godrej, saw a 6% decline in revenues year-on-year due to volume contraction and pricing pressures.
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The fish feed segment experienced a tough time due to erratic rainfall, leading to a degrowth in the first half of the year.
Q & A Highlights
Q: What are the company's plans for succession following Mr. Balram Yadav's retirement? A: Nadir Godrej, Non-Executive Chairman of the Board, stated that the company has good processes in place for succession planning. They are currently interviewing candidates and expect a smooth transition, similar to other CEO transitions within the Godrej Group.