Godrej Agrovet Q2 Profit Down 12% on Higher Costs

New Delhi, Nov 6 (PTI) Godrej Agrovet Ltd has reported a 12 per cent drop in the second-quarter consolidated net profit to Rs 84.34 crore as higher expenses offset revenue growth.

Net profit stood at Rs 95.79 crore in the September quarter of the previous year, the agricultural products company said in a regulatory filing.

Total revenue rose by 5 per cent to Rs 2,563.73 crore in the second quarter from Rs 2,442.68 crore in the year-ago period.

Expenses also increased by 5.5 per cent to Rs 2,450.62 crore in the quarter from Rs 2,323.49 crore a year ago.

"Godrej Agrovet delivered volume-led revenue growth across most segments, with strong margin improvements, despite softness in the standalone crop protection segment," Managing Director Sunil Kataria said.

The company's animal feed business sustained growth momentum while improving margins, Kataria said.

The vegetable oil segment reported strong revenue and profitability gains, driven by higher prices and operational efficiencies, including record oil extraction ratios.

Astec LifeSciences significantly reduced losses both sequentially and year-on-year, supported by higher volumes and stronger margins in the enterprise category, he added.

The dairy business recorded healthy revenue growth excluding bulk sales, with resilient margins despite higher milk procurement costs and increased advertising investments, the company said.

Its poultry and processed foods business posted robust margin expansion, led by strong growth in branded products and a 19 per cent increase in Yummiez revenue.