India's Godrej Agrovet posts higher Q1 profit as costs drop

Godrej Agrovet

01/08/2023 12:28

By Biplob Kumar  Das
       BENGALURU, Aug 1 (Reuters) - India's Godrej Agrovet Ltd
 GODE.NS  reported a 27.3% rise in first-quarter profit on
Tuesday, aided by lower costs and growth in its animal feed and
crop protection businesses.
    The company's consolidated net profit rose to 1.05 billion
rupees ($12.8 million) in April-June, from 827.1 million rupees
a year ago.
    The easing in retail food inflation in the quarter and
demand recovery in the agriculture sector aided profitability as
raw material costs cooled off.
    Godrej Agrovet's input costs fell 5% year-on-year, while
total expenses reduced by 0.6%. This helped offset total revenue
staying flat at 25.10 billion rupees.
    Profit before interest and tax at the company's animal feed
business more than doubled in the quarter, while profit at its
crop protection business grew 78.5%.
    While the animal feed business accounts for about half of
total revenue, the crop protection business is a bigger profit
contributor, at roughly 41%.
    Its smallest business by either measure is vegetable oils,
where profit slumped 67% in the quarter as a correction in
selling prices more than offset higher sales volumes, the Godrej
Group-owned firm said in a statement.
    Shares of the company, which competes with Venky's (India)
 VENK.NS  and Kaveri Seed  KVRI.NS  among others, rose 0.4% on
Tuesday.
    They rose nearly 10% from April to June, sandwiched between
Venky's 18% increase and Kaveri Seed's 6.7% gain.
 
 ($1 = 82.2230 Indian rupees)

 (Reporting by Biplob Kumar Das in Bengaluru; Editing by Savio
D'Souza)
 ((Biplobkumar.das@thomsonreuters.com; 9101861583;))