Motilal Oswal: Godrej Agrovet - Lower Raw Material Costs Drive Margin Expansion For Yet Another Quarter
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Motilal Oswal Report
Godrej Agrovet Ltd. reported a decline in revenues in Q2 FY21. However, the Ebitda margin expanded due to lower raw material costs, leading to 45% Ebitda growth.
Significant margin expansion was seen across segments, barring standalone crop protection.
We increase our earnings estimate for FY21/FY22E by 10%/11%, primarily on account of lower raw material cost for the animal feed segment and better margins in palm oil and milk.
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