Godrej Agrovet August 2 reported 4 per cent decline in consolidated net profit at Rs 77.6 crore for the quarter ended June 2019. It had posted a net profit of Rs 81 crore in the year-ago period.
Total income rose to Rs 1,712.8 crore during April-June 2019 from Rs 1,488.2 crore in the corresponding period of the previous year, the company said in a statement.
Godrej Agrovet is into animal feed, crop protection, oil palm, dairy, poultry and processed foods businesses.
The consolidated results of June quarter include financials of Godrej Tyson Foods and Godrej Maxximilk which became subsidiaries of the company on March 27, 2019.
Hence, the results are not comparable with the year-ago period, it added.
"The animal feed segment registered a year-on-year volume growth of 6.5 per cent in this quarter with a strong growth of 17.2 per cent in segment results. Crop protection segment's consolidated revenue grew 11.6 per cent over Q1 FY'19. However, segment results were flat on account of poor realization," Godrej Agrovet MD B S Yadav said.
The performance of vegetable oil segment was adversely impacted by sharp decline in end product prices and lower oil content due to extended summer and extreme heat, he said, adding that segment revenue and profits were lower by 13.6 per cent and 64.5 per cent, respectively.
In the dairy segment, profitability levels improved in the quarter.
"Currently, Indian agricultural value chain offers immense business opportunities to enhance productivity as practices are largely unorganized. We believe that at Godrej Agrovet we are well placed to capitalise on these opportunities given our presence across underpenetrated and unorganized segments of the agri value chain and our strong focus on research and development," Yadav said.
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