Godrej Agrovet –

Q1 FY 25 concall and results updates –

Revenues – 2351 vs 2510 cr, down 6 pc

EBITDA – 235 vs 204 cr, up 15 pc ( includes an exceptional loss of 18 cr due write down of inventory of Astec Lifesciences. Adjusted for that, EBITDA would have been 253 cr )

PAT – 132 vs 107 cr

Segment wise revenue and EBITDA breakdown –

Animal feed – 1155 cr, 78 cr
Vegetable Oils – 215 cr, 23 cr
Crop protection + Astec Life – 383 cr, 115 cr
Dairy – 429 cr, 28 cr
Poultry and Processed food – 234 cr, 24 cr

Boost in profitability in Q1 led buy robust volume and value growth in Crop protection business ( minus Astec ) and margin expansion in Animal feed + Dairy business

EBITDA / Ton in animal feed business improved sharply to Rs 2258/MT vs Rs 1443/MT, however the volumes were adversely affected due to subdued milk prices

Margins in Veg Oils business reduced due lower Oil extraction ratio

Astec’s generic business continued to see sharp price erosions. Also, deferral of CDMO orders further led to margin compression

Margins in Dairy business improved by 490 bps – led by operational efficiencies and better milk spreads. Contribution of Value added products improved to 42 pc from 36 pc of sales ( big jump )

In the poultry segment, company continues to focus on the branded business and de-focus the live bird business

Astec business is showing improvement in the domestic mkt but continues to face challenges from Chinese dumping in the international markets. However, they hope to grow the CDMO business by 60-70 pc CAGR for next 2-3 yrs. LY, Astec’s CDMO business did a revenue of around 260 cr

Post the heat wave in Q1, rains have been good in July. This should ideally improve the oil extraction ratio and hence the performance of Veg Oil business

Company has acquired 100 pc stake in their Godrej-Tyson JV

ACI-Godrej – their JV in Bangladesh is now no2 player in Bangladesh in the animal feed industry. Since they have a local partner, their investment in JV should be safe

Company hopes to clock EBITDA margins of between 9-10 pc for the rest of FY 25 ( in Q1, margins were exceptionally high @ almost 11 pc )

Company intends to set up a new Greenfield capacity for their animal feed business. Should end up spending 110 cr or so for the same

Dsic : holding, biased, not SEBI registered, not a buy/sell recommendation

The company has recently partnered with Swiggy and is now intensifying its marketing efforts. It seems that management, possibly realizing this later than ideal, has acknowledged the need to innovate and diversify to stay competitive in a crowded market. To thrive, it’s crucial to launch new products and explore synergies with other businesses. By collaborating with Swiggy, they aim to reach a wider audience, enhance customer convenience, and potentially introduce new offerings that align with their core business. This could be a crucial step toward ensuring long-term success in a challenging environment.

SEBI IPO DRHP is a good source SEBI | Public Issues

I tried to find a thread on Bondada, but seems like its not covered here anywhere.
Does anyone have any write up, analysis on it? Seems like a buy even at current levels.