India's Godrej Agrovet posts 75% drop in Q4 profit as costs rise

Godrej Agrovet

09/05/2023 13:12

BENGALURU, May 9 (Reuters) - India's Godrej Agrovet Ltd
 GODE.NS  reported a 74.6% fall in quarterly profit on Tuesday,
hurt by higher costs and weakness in its vegetable oil and crop
protection business.
    Consolidated net profit at the company, which competes with
Venky's (India)  VENK.NS  and Kaveri Seed  KVRI.NS  among
others, fell to 310.2 million rupees ($3.79 million) in the
seasonally weak fourth quarter ended March 31, from 1.22 billion
rupees a year ago.
    Companies like Godrej Agrovet, which sell animal-feed to
poultry farmers and produce crude palm oil, have seen their
profit squeezed due to higher inventory costs. Some analysts
have also warned that rising concerns tied to the El-Niño
weather pattern could hurt them.
    Finance costs at the Godrej Group-owned company rose about
50%, while total revenue from operations rose at a meager 0.7%.
It saw a 22.8% sales drop in its vegetable oil arm and 31.4%
decline in its crop protection business. Sales at its mainstay
animal-feed arm rose 10.2%.
    Shares of the Temasek-backed firm have fallen ~6% this year
as of today's close. 
    
      
  
($1 = 81.7800 Indian rupees)

 (Reporting by Biplob Kumar Das in Bengaluru)
 ((Biplobkumar.das@thomsonreuters.com; 9101861583;))