Godrej Agrovet Limited

INR 8,385.7 crore

rovet in terms of top line growth with strengthening profitability. We recorded a total income of INR 8,385.7 crore in financial year 21-22, growing at 33% as compared to the previous year. Our quarter four growth

33%

profitability. We recorded a total income of INR 8,385.7 crore in financial year 21-22, growing at 33% as compared to the previous year. Our quarter four growth in total income was also excellent at 44

44.9%

3% as compared to the previous year. Our quarter four growth in total income was also excellent at 44.9% year on year. The consolidated profit before tax grew by 92.4% and 22.4% for Q4 and FY22 respecti

92.4%

total income was also excellent at 44.9% year on year. The consolidated profit before tax grew by 92.4% and 22.4% for Q4 and FY22 respectively, please note that the above numbers are excluding exceptio

22.4%

ome was also excellent at 44.9% year on year. The consolidated profit before tax grew by 92.4% and 22.4% for Q4 and FY22 respectively, please note that the above numbers are excluding exceptional and no

0.57x

r the quarter. Our consolidated balance sheet remains strong with net debt to equity in a ratio of 0.57x as on 31st March, 2022, largely unchanged from the previous quarters. Now I will discuss the key

20%

key financial and business highlights of each of our business segments. In animal feed we achieved 20% growth in volumes in Q4 as well as in financial year 21-22. The volume growth

22.2%

the continued drive with input commodity, however, for the full year 2022 segment results grew by 22.2% year on year. There were several factors driving growth in segment results, such as timely price h

51%

mes as compared to Q4 FY21. The average prices of crude palm oil and palm kernel oil increased by 51% and 90% respectively in FY22 versus FY21. Improvement in the oil extraction ratio in FY22 was driv

90%

compared to Q4 FY21. The average prices of crude palm oil and palm kernel oil increased by 51% and 90% respectively in FY22 versus FY21. Improvement in the oil extraction ratio in FY22 was driven by R&

58.2%

Life Sciences delivered its best quarterly and annual performance in Q4 and FY22. Revenues grew by 58.2% in Q4, while it closed the year with the growth of 21.9% reaching INR 676.6 crore in FY22. The rob

21.9%

formance in Q4 and FY22. Revenues grew by 58.2% in Q4, while it closed the year with the growth of 21.9% reaching INR 676.6 crore in FY22. The robust performance was mainly driven by higher export realiz

“As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes.”

“Sir, any guidance in terms of the volume growth for next year?”

“We have made extra provision also just to clean the balance sheet for future and not to punish future because of last year, of course, that money will be recovered and most of the stock which has been taken back will be, I would say re-dispatched because all of this stocks had almost one to one and a half years of expiry remaining.”

“We also took consultants’ help who are working on this project for last 6 months to set processes and set checks and balances so that in case there is a COVID wave or drought we should not get into a similar jam.”

“So I'm very sure that with lot of discipline, we will regain our lost glory and we are not very aggressive in going for top line this year, but we will come back to 13 to 14% PBT on sale, which has been norm, but this will be much cleaner sales and we will maintain the hygiene in the market.”

“I would say that we are close to about 70,000 hectares already and this year again we are going to do 4,000 to 5,000 more expansion, but I must also tell you that net increase is only about 3000 hectares cause uprooting keeps on happening and now that NMEO-OP scheme is there once we get allocations in Northeast and in other states, we might increase this number to 7000 to 8000 hectares a year from next year onwards.”

“So definitely the target is because I think, better analysis, better equipment, better technology, lot of work has happened for last 3 to 4 years with this, because you know, more OER is more profit for us because we pay on fruit weight.”

“So I have a feeling that definitely this is sustainable this year, but most probably we will take more steps to improve it further next year also.”

“We believe that we have got into dominant position in several states, particularly in cattle feed and layer feed and we are very, very hopeful that not only we will be able to maintain that leadership, but also add one or two more states in this list.”

“So today the CPO price is close to about INR 150 per kg and the CPQ price is close to about INR 220 per kg, which are totally unstable because at these levels there will be huge demand destruction.”

Balram S. Yadav

30

Saurabh Kapadia

8

Depesh Kashyap

8

Moderator

7

Nadir Godrej

4

Nithin Awasthi

4

Vidit Shah

3

Falguni Dutta

3

Aniruddha Joshi

2

S Varadaraj

1

Nadir Godrej

Godrej Agrovet Limited Ladies and gentlemen, good day and welcome to Godrej Agrovet Limited earnings Conference Call. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing “*” then “0” on your touch tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Mit Shah from CDR India. Thank you and over to you, sir. Thank you, good afternoon everyone and thank you for joining us on the Godrej Agrovet Limited Q4 and FY 22 earnings Conference Call. From the company we have Mr. Nadir Godrej, chairman of the company, Mr. Balram S. Yadav, managing director, and Mr. S. Varadraj, chief financial officer. We would like to begin the call with the brief opening remarks from the management, following which we will open the forum for an interactive Q and A sessi