Venky's (India) Q2 PAT drops 16% YoY amid surge in prices of poultry feeds

Venky's (India) fell 2.40% to Rs 2657.95 after the company's net profit declined by 15.6% to Rs 30.68 crore despite a 40.7% rise in revenue from operations to Rs 987.76 crore in Q2 FY22 over Q2 FY21.

On the segmental front, revenue from Poultry and Poultry Products was Rs 436.58 crore (up 36.4% YoY), Animal Health Products revenue was Rs 68.71 crore (up 44.2% YoY) and Oilseed revenue was Rs 534.45 crore (up 49.6% YoY) in the second quarter.

Profit before tax in Q2 FY22 stood at Rs 41.39 crore, down by 14.9% from Rs 48.62 crore in Q2 FY21.

As compared with Q1 FY22, the company's net profit and revenue have declined by 44.3% and 8.9%, respectively.

Venky's said that during the quarter ended 30 September 2021, the poultry and poultry products segment's profit margins were severely affected due to steep rise in the prices of key poultry feed ingredients. Price of soya has seen an unprecedented increase.

Venky's (India) is a part of the VH group which is the largest and most integrated poultry player in India with strong presence in poultry broiler as well as layer segment along with sizeable presence in value added segments like animal healthcare products and processed chicken. The group's operations span the entire spectrum of poultry activities from pure-line breeding, grandparent and parent breeding and sale of commercial day-old chicks (DOCs) to contract commercial farming.

Powered by Capital Market - Live News