Godrej Agrovet & Astec Lifesciences FY21 Annual Report Takeaways 🌳

'Improving the productivity of farmers by innovating products and services that sustainably increase crop & livestock yields'

Hit the 'retweet' & help us educate more investors.

A Thread 🧵👇

1/ About the company:

The resilience of the Agriculture sector (3.6% growth vs economic contraction)

Focusing on People, Planet & Profits: Investments continue in Animal Feed & Astec's businesses

One of the challenges that management overcame was robust distribution in COVID.
2/ From the desk of the chairman (Mr. Nadir)

- Strong performance in Animal Feed biz (margins expanded) & Astec Lifesciences
- Being in 5 cyclical businesses, is a hedge as the outperformance of a few compensates for others
- Will continue to invest in R&D & a +ve outlook.
3/ Numbers that matter

Rev down 9%
EBITDA margin of 10%
PAT (ex. one-offs) up 60%
Weak cash flows: led to jump in debt

Diversified: 47% Animal Feed | 17% Crop protection | 16% Dairy | 11% Vegetable Oil | 9% Poultry & Processed Foods
4900+ Employees
15cr R&D Spend
256cr capex
4/ Agricultural sector macro overview

- Vaccination program is the only key to riches here
- FY21 was a windfall for Agriculture: Rainfall which was highest in last 25yrs, higher sowing, higher food grain production
- FY22 has started on a +ve note with better Rabi harvest YoY
5/ Animal Feed Business

- Volumes down 13% & rev down 17%: weak HoReCa (out of home consumption) sales & feed sales are directly proportional to end protein products
- Margins higher: R&D & low RM costs
- Capacity expansion: New fish feed plant going online in FY22.
6/ Crop Protection (Incl. Astec)

- Acceleration collections (up 27%) to improve WC
- Results flat, increased distribution by partnering with major Agrochem players
- Astec Life: Rev up 5% & PAT up 45%: New Herbicide plant (115cr capex) & R&D facility (medium-long term) coming up
7/ Oil Palm

- Rev up 5%, PAT down 6%: Affected by white-fly infestation affecting FFBs volumes & the oil content
- Oil prices up 30% YoY, Company has been allotted land with a possible increase of 40% of capacity
- R&D initiatives: to improve the oil extraction ratio & new VAPs.
8/ Dairy

- Rev down 13%, PAT better due to lower procurement prices & fixed cost rationalization
- Godrej Jersey logo got revamped & relaunched after a lot more marketing (what has changed this time?)
- Working on strengthening milk procurement network (the most important part)
9/ Poultry & Processed Foods

- Income up 17%, back to profitability
- Live bird segment: Low RM & higher realizations | Will continue to expand
- Frozen foods: strong in-home consumption (veg & non-veg) | Increasing product portfolio & distribution
10/ Opportunities & Threats

Diversified agri-focused conglomerate: few of the businesses have not yet reached critical mass & pricing power is not found in any

A class company whose 'fortunes are dependent on 3G: God, Government & Godrej Team' ~ Balram Yadav, MD

End of Thread.
Godrej Agrovet Q4FY21 results
https://t.co/Ny88qYdURy

Godrej Agrovet Q4FY21 key insights
https://t.co/jfAyLjrQQJ

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🌿𝑻𝒉𝒆 𝒔𝒕𝒐𝒓𝒚 𝒐𝒇 𝒂 𝑺𝒕𝒂𝒓 : 𝑫𝒉𝒓𝒖𝒗𝒂 & 𝑽𝒊𝒔𝒉𝒏𝒖

Once upon a time there was a Raja named Uttānapāda born of Svayambhuva Manu,1st man on earth.He had 2 beautiful wives - Suniti & Suruchi & two sons were born of them Dhruva & Uttama respectively.
#talesofkrishna https://t.co/E85MTPkF9W


Now Suniti was the daughter of a tribal chief while Suruchi was the daughter of a rich king. Hence Suruchi was always favored the most by Raja while Suniti was ignored. But while Suniti was gentle & kind hearted by nature Suruchi was venomous inside.
#KrishnaLeela


The story is of a time when ideally the eldest son of the king becomes the heir to the throne. Hence the sinhasan of the Raja belonged to Dhruva.This is why Suruchi who was the 2nd wife nourished poison in her heart for Dhruva as she knew her son will never get the throne.


One day when Dhruva was just 5 years old he went on to sit on his father's lap. Suruchi, the jealous queen, got enraged and shoved him away from Raja as she never wanted Raja to shower Dhruva with his fatherly affection.


Dhruva protested questioning his step mother "why can't i sit on my own father's lap?" A furious Suruchi berated him saying "only God can allow him that privilege. Go ask him"