Godrej Agrovet Navigates Higher Costs to Achieve Revenue Growth

Godrej Agrovet Ltd reported a 12% decline in Q2 net profit to Rs 84.34 crore, attributed to higher expenses despite a 5% rise in revenue to Rs 2,563.73 crore. The company's animal feed and vegetable oil segments showed strong growth, while Astec LifeSciences reduced losses.

Godrej Agrovet Ltd has encountered a 12 per cent drop in its second-quarter consolidated net profit, reaching Rs 84.34 crore. The agricultural company attributed this decline to heightened expenses even as it witnessed growth in revenue.

Total revenue for the quarter rose by 5 per cent to Rs 2,563.73 crore, an increase from last year's Rs 2,442.68 crore, while expenses increased by 5.5 per cent, totaling Rs 2,450.62 crore. Managing Director Sunil Kataria highlighted volume-led revenue growth across most segments, driven by improved margins despite challenges in the crop protection sector.

The animal feed business maintained its growth trajectory with better margins, and the vegetable oil segment achieved substantial revenue and profit gains due to higher prices and efficient operations. Astec LifeSciences showed reduced losses, supported by increased volumes. Meanwhile, the dairy and processed foods segments recorded growth, with the latter benefiting from a marked increase in branded product sales.

(With inputs from agencies.)