MUMBAI, 20 May 2020: India leading animal feed and agribusiness company, Godrej Agrovet has reported a drop in consolidated net profit by 42.65% at INR 69.20 crore for the fourth quarter ended 31 March 2020 due to higher expenses.

During the same quarter last fiscal year, the company had reported a profit of INR 120.68 crore, the company said in a filling to the stock exchange.

The company however, recorded an increase in income to INR 1,627.68 crore, against the INR 1390.91 croro income it  recorded during the same quarter last year

Total expenses also increased to INR 1,548.05 crore as against INR 1,349.17 crore a year ago, while the company's consolidated net profit declined to INR 300.58 crore, as compared to INR 349.33 crore in the previous year.

Total income increased to INR 6,964.04 crore in FY20 from Rs 5,917.73 crore a year ago, whereas, expenses also shot up to INR 6,665.25 crore during the year from INR 5,593.95 crore in 2018-19.

The company in a statement said that its performance had started showing good recovery in the beginning of the fourth quarter, but false rumors of coronavirus infection through poultry in beginning of February 2020 significantly impacted volume, prices and thereby the profitability of two businesses -- animal feed and Godrej Tyson.

Further, the outbreak of COVID-19 in mid-March 2020 in India affected sales in other segments also. This adversely impacted the performance of the fourth quarter, the statement added.

Performance in Astec, oil palm plantation and aqua feed was strong which supported the quarterly performance, it added.

The company, whose businesses are part of essential commodities, said it resumed operations in April 2020 after obtaining necessary approvals from local authorities.

The factories are currently operational and have deployed health and safety protocols across all locations.

The company said it is well-equipped to manage the current situation based on the strong business continuity plan put in place.