Godrej Agrovet Ltd Q3 FY25 Results

Driven by stellar performances in Vegetable Oil business, Animal Feed business and Poultry business; Godrej Agrovet has reported robust growth in profitability in Q3 FY25. Although topline growth remained modest, EBITDA margins surged significantly, improving by ~200 basis points compared to Q3 FY24. Vegetable Oil business delivered strong growth in profitability in Q3 FY25 driven by higher realizations in respect of end products coupled with an improved Oil Extraction Ratio (OER) compared to same period previous year. Animal Feed business also witnessed a remarkable improvement in segment margins due to favorable commodity positions. While overall volumes grew marginally as compared to Q3 FY24, sequential volume surged by 10%. This growth was primarily driven by strong performance in the cattle, broiler, and layer feed segments. In Poultry business, while live bird volumes decreased in line with our strategy to focus on branded business, branded volumes improved marginally resulting in decline in topline. Profitability improved significantly due to higher realizations in the live bird segment compared to Q3 FY24. Astec's EBITDA losses improved sequentially in Q3 FY25, narrowing from % 18 Crore in Q2 FY25 to = 4 Crore. This was due to higher CDMO volumes but offset by lower realizations in the key Enterprise products. EBITDA losses also narrowed y-o-y from % 17 Crore in Q3 FY24 to 2 4 Crore in Q3 FY25. We expect to see improvement in performance in the coming quarters. In Domestic Crop Protection business lower sales volumes in in-license category negatively impacted segment revenue and margins during Q3 FY25. This decline was primarily attributed to localized extreme weather events in key markets and subdued crop prices.