Venky's India slips 10% on disappointing Q2 results

The stock slipped 10% to Rs 2,541 after the company reported 80% drop in profit at Rs 55 million, due to lower realizations from the sale of grown-up broilers and broiler day-old chicks.

Shares of Venky’s India has slipped 10% to Rs 2,541 per share on the BSE in afternoon deals after the company reported 80% year-on-year (Y-o-Y) drop in its net profit at Rs 55 million in September quarter (Q2FY19). It had a profit of Rs 271 million in the year-ago quarter and Rs 710 million in the previous quarter.

The net profit during the quarter was the lowest in the past two years. The profitability of the company was affected during this quarter, due to lower realizations from the sale of grown-up broilers and broiler day-old chicks.

The company’s revenue from operations grew 10% at Rs 6,462 million against Rs 5,879 million in the corresponding quarter of previous fiscal. EBITDA (earnings before interest, tax, depreciation and amortization) margin declined to 3.8% from 10.5% in the year-ago quarter.

At 12:26 PM; Venky’s India was trading 8% lower at Rs 2,600 on the BSE, as compared to 0.29% decline in the S&P BSE Sensex. The trading volumes on the counter jumped more than three-fold with a combined 530,493 equity shares changed hands on the BSE and NSE so far.

In past one month, the stock had outperformed the market by surging 35% against 2% rise in the benchmark index. It touched a 52-week low of Rs 1,788 on July 19, 2018, and a 52-week high of Rs 4,711 on April 9, 2018.