I have pleasure in presenting the Company's performance for the financial year 2018-19.The Company has registered a growth of 13.29% in revenue however the profit before taxwas lower by 17.94% as compared to the previous year. During the year the price of maize- which is the key ingredient for poultry feed - has gone up steeply putting high pressureon profit margins. Further lower realizations from sale of poultry products have alsoadded to the reduction in profits. The financial performance of the Animal Health Productssegment was slightly lower. The Oilseed segment's performance was lower as compared to theprevious year.
The Company's two new projects viz. (I) expansion in oilseed segment by setting up anew solvent extraction plant and vegetable oil refinery; and (2) expansion of SpecificPathogen Free eggs capacity by setting new production unit are in the final stages ofcompletion and it is expected that the new projects will start contributing to the revenueof the Company from the 1* quarter of calendar year 2020.
The Company will continue to look for opportunities to expand its business activitiesin all the three segments with a view to achieve steady growth in the years to come.
In spite of the challenging circumstances - one of them is the high feed cost which thepoultry industry is facing as at present - we at Venky's are able to maintain the steadyrevenue growth along with the poultry industry thanks to the farsighted visionmeticulous planning and creation of high quality infrastructure and the very highstandards of customer service of our Late Chairman Padmashree Dr. B.V Rao. These are ourinherent strengths which give us a competitive edge in a steadily growing market which hasthe potential for manifold growth for several years to come.
I wish you and your families all the best.
Anuradha J. Desai