India’s Godrej Agrovet reported a 74.6 per cent fall in quarterly profit on Tuesday, hurt by higher costs and weakness in its vegetable oil and crop protection business.
Consolidated net profit at the company, which competes with Venky’s (India) and Kaveri Seed among others, fell to Rs 31020 crore in the seasonally weak fourth quarter that ended 31 March, from Rs 122 crore a year ago.
Companies like Godrej Agrovet, which sell animal feed to poultry farmers and produce crude palm oil, have seen their profit squeezed due to higher inventory costs. Some analysts have also warned that rising concerns tied to the El-Niño weather pattern could hurt them.
Finance costs at the Godrej Group-owned company rose about 50 per cent, while total revenue from operations rose at a meagre 0.7 per cent. It saw a 22.8 per cent sales drop in its vegetable oil arm and a 31.4 per cent decline in its crop protection business. Sales at its mainstay animal-feed arm rose 10.2 per cent.
(REUTERS)
