India`s Godrej Agrovet posts 75% drop in Q4 profit as costs rise
India's Godrej Agrovet Ltd reported a 74.6% 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 310.2 million rupees ($3.79 million) in the seasonally weak fourth quarter ended March 31, from 1.22 billion rupees 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%, while total revenue from operations rose at a meager 0.7%. It saw a 22.8% sales drop in its vegetable oil arm and 31.4% decline in its crop protection business. Sales at its mainstay animal-feed arm rose 10.2%.
Shares of the Temasek-backed firm have fallen ~6% this year as of today's close.
($1 = 81.7800 Indian rupees)
