Godrej Agrovet Q4 net profit falls

11 May 2020

Godrej Agrovet Limited has today reported its financial performance for the fourth quarter and full year ended March 31, 2020

• For the fourth quarter ended March 31, 2020, company reported consolidated total income#* of Rs.1,508.9 crore which reflects year-on-year growth of 7.5%. Profit before tax#* (excluding non-recurring and exceptional items) was Rs.17.9 crore compared to Rs.53.8 crore reported during the same period in the previous year
• For the full year ended March 31, 2020, company reported consolidated total income#* of Rs.6,876.2 crore which reflects year-on-year growth of 15.7%. Profit before tax#* (excluding non-recurring and exceptional items) was Rs.280.5 crore, compared to Rs.361.4 crore reported during the same period in the previous year.
• The Board of Directors have recommended a final dividend of Rs.5.5 per share on the face value of Rs 10 each.

HIGHLIGHTS OF CONSOLIDATED FINANCIAL PERFORMANCE (4QFY20 & FY20)

(Rs. in crore)

# (1) For the fourth quarter and full year ended March 2020 total income excludes Rs.134.7crore, EBITDA and PBT excludes Rs.78.1crore and PAT excludes Rs.61.7crore of non-recurring income pertaining to sale of real estate project; (2) Consolidated results of the fourth quarter and full year ended March 2020 include financials of Godrej Tyson Foods Limited and Godrej Maxximilk Private Limited which became subsidiaries on 27th March 2019. Consequently, the consolidated results for current quarter and full year are not comparable with the corresponding previous periods.

* (1) Total income, EBITDA and PBT for full year FY19 excludes Rs.29.9 crore and PAT excludes Rs.23.0 crore of non-recurring income pertaining to profit earned on sale of land (net of expenses). (2) Total income, EBITDA and PBT for 4QFY19 and full year FY19 also excludes Rs.2.3 crore and PAT excludes Rs.1.5 crore of non-recurring loss incurred on sale of land in CDPL; (3) Financials exclude exceptional items.

Managing Directors Comments

Commenting on the performance of the 4QFY20 and FY20, Mr. B. S. Yadav, Managing Director, Godrej Agrovet Limited, said:

Godrej Agrovet Limited’s reported consolidated total income of Rs.6876 crore for the financial year 2019-20 registered year-on-year growth of 15.7%. Consolidated profit before tax (excluding non-recurring and exceptional items) was Rs.281 crore compared to Rs.361 crore reported in previous year

Our performance had started showing good recovery in the beginning of the fourth quarter, especially in the businesses which were impacted in the first nine months of the year. This was because output prices were improving and input prices started trending downward. However, in beginning of February 2020, false rumour of coronavirus infection through poultry and its products significantly impacted volume, prices and thereby the profitability in our two businesses – animal feed and Godrej Tyson. Further, outbreak of COVID-19 in mid-March 2020 in India affected sales in other segments also. This adversely impacted the performance of the fourth quarter. However, on the positive side, performance in Astec, oil palm plantation and aqua feed was strong which supported the quarterly performance. For the full year, while animal feed and Astec posted strong growth compared to previous year, food businesses and oil palm plantation were impacted by low output prices and high costs. Performance of the crop protection in the standalone business was also modest during the year.

COVID-19 pandemic outbreak is one of the toughest situation being faced by human mankind globally, including India. Post the outbreak of COVID-19 in March 2020, we focused on ensuring safety of our employees and business partners first and took all necessary steps as per Government directives on safety and health. GAVL operates in agriculture sector and all our businesses are part of essential commodities. We resumed operations in April 2020 after obtaining necessary approvals from local authorities. Our factories are currently operational and we have deployed health and safety protocols across all locations. The demand for our products remain firm and our teams are relentlessly working towards providing uninterrupted supply of our essential products (feed, agrochemicals, dairy products, and poultry and processed food products) for animal husbandry, crop protection and household consumption.

In these times, we at Godrej Agrovet are fully committed to support our nation, customers, business partners and employees. We are well-equipped to manage the current situation based on the strong business continuity plan put in place. We are also focusing on cost optimization and working capital management. Our balance sheet remains strong with low gearing levels and healthy liquidity position.