Godrej Agrovet stock surges by over 5% after Telangana govt allots 47,000 acres for its palm oil business

Godrej Agrovet stock on Tuesday surged by more than 5 per cent after the company announced that it has been allotted a potential area of 47,000 acres in Sangareddy district of Telangana for its oil palm business. At 3.30 PM, the agribusiness company shares were trading at Rs 498.20, up by 5.42 per cent.

In an exchange filing, the company said that the Department of Agriculture and Cooperation, Government of Telangana, has allotted the land, which will be utilised to expand the cultivation of oil palm and set up oil palm processing units.

“We are delighted to receive additional district in the fresh allotment released by the Government of Telangana. It is a testimony of GAVL’s commitment and efforts to boost oil palm plantation and promote farmer prosperity in the region. We would like to thank Government of Telangana for their support and commitment to this initiative which will benefit the farmers,” said Balram Singh Yadav, Managing Director, GAVL.

Recently, GAVL inaugurated an edible oil refinery at Chintalapudi, Eluru district in Andhra Pradesh, which is its first downstream project for value-added products in oil and fats segment. The refinery, the company said, will help it cater to captive needs originating from the company’s oil palm work in the southern states along with demand from other crude palm oil players in the region.

In Q4 FY23, Godrej Agrovet reported an 83.21 per cent decline in consolidated net profit at Rs 23.47 crore. The company's net profit stood at Rs 139.81 crore during the corresponding period of 2021-22, according to a regulatory filing. Revenue from the company's operations during the quarter under review was almost flat at Rs 2,088.80 crore as against Rs 2,075.62 crore in the year-ago period.

Revenue from operations of the company during the quarter under review was almost flat at Rs 2,088.80 crore as against Rs 2,075.62 crore in the year-ago period.

In FY23, Godrej Agrovet's net profit fell 29.53 per cent to Rs 295.36 crore as compared with Rs 419.15 crore in FY2021-22.

Revenue from operations of Godrej Agrovet in FY23 grew 12.78 per cent to Rs 9,352.81 crore from Rs 8,292.93 crore a year ago.

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