Venky's India Q1 profit jumps about fourfold as costs ease
Company shares jumped 16% following the announcement
8 August 2024
1 minute read
By: Venky's India posted a near fourfold jump in first-quarter profit on Wednesday, underpinned by easing input costs and steady sales in its poultry business, reported Reuters.
Shares of the Pune-based company climbed 16% after the results were announced.
Profit rose to 751.8 million rupees (nearly $9 million) for the quarter ended June 30, from 194.1 million rupees a year earlier.
Realisations in the poultry segment were higher from sales of day-old chicks and adult broiler birds, which are reared for consumption, the company said in an exchange filing.
The company's input costs, which include costs of poultry feed ingredients such as soy and maize, slumped 33%, pushing overall expenses lower by 25%.
Revenue from operations in its poultry and poultry products business, which contributed about 64% to the total sales, rose nearly 18% year-on-year.
Overall revenue fell 17%, dragged down by a 51% drop in its oilseed segment, which contributed to 29% of the overall topline.
Venky's sells edible oil obtained from processing oilseed such as soy, while the by-product de-oiled cake is sold or used as poultry feed.
The oilseed segment's margins were hit by lower sales and subdued realizations from finished goods, including de-oiled cake and oil, the company said.
($1 = 83.9372 Indian rupees)
