Godrej Agrovet - Palm Oil Drags Overall Q3 Performance Due To White-Fly Attack: Motilal Oswal
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Motilal Oswal Report
Godrej Agrovet Ltd.’s Q3 FY21 revenue decreased by 14% YoY due to a 23%/17%/10% decline in the animal feed (AF)/palm oil/dairy segment.
However, Ebitda margin expanded due to lower raw material costs, which led to 12% Ebitda growth.
Margin expansion was witnessed in AF and processed foods and dairy, but contracted in palm oil and crop protection (CP).
Factoring in the below expected performance during Q3 FY21 (mainly due to palm oil, AF, and CP), we decrease our FY21E profit after tax estimate by 7%.
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