Ranvir’s Portfolio

Godrej Agrovet -

Q2 FY 25 results and concall updates -

Revenues - 2449 vs 2571 cr, down 5 pc
EBITDA - 221 vs 215 cr, up 3 pc ( margins @ 9 vs 8.3 pc )
PAT - 104 vs 105 cr

Segment wise revenues , EBIT -

Animal feed - 1205 vs 1242 cr , EBITDA @ 71 vs 57 cr ( margins @ 6 vs 4.6 pc ). Cattle feed degrew YoY due weak milk prices. Broiler and Layer feed volumes grew by 5.5 and 10.5 pc YoY

Vegetable Oil - 434 vs 435 cr, EBITDA @ 73 vs 68 cr ( margins @ 17 vs 15.6 pc ). Despite a 13 pc decline in fresh fruit bunch arrivals, segment revenues did not decline due improved realisations for Crude Palm Oil and Palm Kernel Oil. Also, GOI has raised the import duties on crude sunflower, soybean and palm oils wef Sep 24

Crop protection - 198 vs 243 cr, EBITDA @ 85 vs 77 cr ( margins @ 43 vs 30 pc !!! ) Erratic rainfalls led to lower spraying opportunities of herbicides by farmers and higher sales returns - leading to a de-growth in topline

Astec Lifesciences - 99 vs 111 cr, EBITDA @ (-) 17 vs (-) 2.4 cr ( margins @ (-) 18 vs (-) 2 pc ). Weakness in generic business continues. CDMO volumes were affected by cautious approach adopted by key customers

Creamline Dairy - 403 vs 390 cr, EBITDA @ 18 vs 12 cr ( margins @ 4.4 vs 3 pc ). Sales of VAP stood @ 32 pc of sales

Godrej Tyson Foods - 197 vs 237 cr, EBITDA @ 5 vs 19 cr ( margins @ 2.7 vs 8.2 cr )

JV - ACI Godrej Agrovet - 410 vs 438 cr

Expecting a very strong H2 in Astec Life’s CDMO business. That should propel Astec’s CDMO revenue growth for full FY 25 to > 400 cr vs 270 cr in FY 24

Share of VAP in Creamline dairy business fell to 32 pc vs 40 pc in Q1 due prolonged rainy season which led to lower sales of curd, buttermilk, lassi etc. Company expects a strong rebound in VAP sales in Q3 and Q4

Vegetable oils should see a better H2 vs H2 LY both because of increased import duties and absence of over-supply in the mkt

Q2 is generally the weakest Qtr of the year for Godrej Tyson business - because of Savan, Shradh periods. This business should see good pick up wef Q3. Also, the chicken and mutton prices were unusually high ( due increased incidence of disease ) in Q2 leading to margin compressions

Expecting a reduction in receivables as they go into H2. Receivables generally build up in Q2 due to the crop protection business. This should also lead to significant debt reduction by end of current FY

In the CDMO business, company currently has 9 molecules in the manufacturing phase. They did not disclose the number of molecules in the development phase

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