Mumbai, January 31, 2025 – Godrej Agrovet Limited (NSE: GODREJAGRO, BSE: 540743) has released its unaudited financial results for Q3 FY25 (quarter ended December 31, 2024), reporting consolidated revenue from operations of ₹2,449.63 crore and net profit of ₹109.85 crore. The company also deferred its previously planned ₹1,000 crore borrowing.
Key Financial Highlights (Consolidated)
Q3 FY25 vs. Q3 FY24 (YoY Comparison)
| Particulars | Q3 FY25 (₹ Cr) | Q3 FY24 (₹ Cr) | YoY Growth (%) |
|---|---|---|---|
| Revenue from Operations | 2,449.63 | 2,345.21 | +4.5% |
| Total Income | 2,458.35 | 2,353.57 | +4.5% |
| Total Expenses | 2,320.80 | 2,264.19 | +2.5% |
| EBITDA | 217.29 | 141.51 | +53.6% |
| Profit Before Tax (PBT) | 151.25 | 102.01 | +48.3% |
| Net Profit (PAT) | 109.85 | 82.96 | +32.4% |
| Earnings Per Share (EPS) | 5.80 | 4.78 | +21.3% |
Nine-Month Performance (April – December 2024)
For the nine months ended December 31, 2024, the company reported:- Revenue from operations at ₹7,249.13 crore, a 2.4% decline YoY.
- Net profit at ₹337.27 crore, reflecting 14.7% YoY growth.
Segment-Wise Performance
Godrej Agrovet operates across multiple business segments, with diverse revenue contributions and performance trends in Q3 FY25 compared to the same period last year.| Business Segment | Q3 FY25 Revenue (₹ Crore) | Q3 FY24 Revenue (₹ Crore) | YoY Growth (%) |
|---|---|---|---|
| Animal Feed | 1,274.18 | 1,291.39 | -1.3% |
| Vegetable Oil | 487.72 | 354.50 | +37.6% |
| Crop Protection | 193.42 | 222.46 | -13.1% |
| Dairy | 369.84 | 366.18 | +1.0% |
| Poultry & Processed Foods | 215.53 | 222.86 | -3.3% |
Key Observations & Insights:
- Vegetable Oil Business Leads Growth
- This segment registered a strong 37.6% YoY increase, fueled by higher realizations and increased demand for edible oils.
- Animal Feed Shows a Marginal Decline (-1.3%)
- While sales volume remained stable, lower pricing trends impacted revenue.
- Crop Protection Segment Declined (-13.1%)
- The drop was attributed to weaker export demand and lower off-take from domestic markets.
- Dairy Business Remained Stable (+1.0%)
- Growth in this segment was moderate, driven by consistent consumer demand for dairy products.
- Poultry & Processed Foods Saw a Decline (-3.3%)
- The segment faced price volatility and fluctuating demand in key urban markets.
Balance Sheet & Liquidity
- Net Worth: ₹2,749.47 crore, slightly lower than the previous year's ₹2,855.13 crore.
- Debt-to-Equity Ratio: Maintained at 0.51, indicating a stable financial position.
- Operating Margin: 8.98%, improved from 6.80% last year, reflecting cost optimization.
- Net Profit Margin: 4.48%, up from 3.50% in Q3 FY24.
Key Corporate Announcements
- Deferral of ₹1,000 Crore Borrowing Plan
- The Board has deferred raising ₹1,000 crore in additional borrowings, originally approved by shareholders in 2018.
- The decision indicates a focus on internal cash flows and operational efficiency rather than external funding.
- Limited Review Report
- The company’s statutory auditors issued an unmodified review report, indicating no significant financial discrepancies.
Management Commentary
Vivek Raizada, Head – Legal & Company Secretary, Godrej Agrovet, commented:"Despite a slight revenue decline in some segments, we have successfully improved profitability and cost efficiencies. The strong performance in the Vegetable Oil and Dairy segments demonstrates our strategic growth initiatives. Our decision to defer additional borrowings reflects a prudent capital management approach as we focus on organic expansion."
Strategic Outlook
- Cost Management & Margin Expansion: The company is prioritizing cost controls, leading to higher EBITDA margins.
- Focus on High-Growth Segments: Stronger investments in Vegetable Oil & Dairy businesses will be a key driver moving forward.
- Market Volatility Considerations: The company remains cautious about commodity price fluctuations and global demand trends.
Stock Market & Investor Sentiment
- Earnings growth is expected to positively impact investor confidence.
- The deferred ₹1,000 crore fundraising suggests a strong internal financial position and cautious approach to debt.