To begin with I wish you and your families the very best and do hope that you all arewell and safe.
The financial year 2020-21 has been largely challenging with frequent disruptions dueto Covid-19 pandemic and subsequent lockdown measures. Several states in India haveenforced local restrictions to tackle the second wave of Covid-19 affecting mainly thehospitality industry. In spite of these factors I am pleased to note that Venkysrose to the occasion to deliver a reasonably better performance. This has been possiblethanks to the farsighted vision meticulous planning and creation of high qualityinfrastructure of our Late Chairman Padmashree Dr.B.V. Rao.
For the financial year 2020-21 though the sales turnover was slightly lower ascompared to the previous year the profitability has vastly improved due to betterrealizations from the sale of day old chicks and grown up broilers. The overall financialposition of the Company has also improved. As a result the total borrowings have beenfurther reduced. The Companys ability to generate cash from business activities hasalso improved. Cash accruals were utilized to reduce borrowings to meet capitalexpenditure and to pay bank interest charges. Venkys has a strong Balance Sheet withnegligible debts.
The Board has recommended a dividend of Rs. 17 per share (170%) for the year ended 31st March
As the shareholders are aware in the last couple of years Venkys had undertakenand completed various expansion projects in all the three business segments. Benefits ofthese new projects have started accruing from April 2021. As far as demand scenario forpoultry products is concerned I am hopeful that certain measures like gradual relaxationof lockdown norms and subsequent revival of economic activities and CentralGovernments support in the form of incentives will lead to a steady and sustainedrecovery. Returning to normal life augurs well for the poultry industry in general andVenkys is expected to benefit from this trend.
The poultry industry is currently facing a challenge in the form of steep increase insoya price forcing nearly 30% of small farmers to go out of their business. An increaseof nearly 75% in soya prices in one year is not affordable. The industry as a whole isstruggling to deal with this crisis situation. A normal monsoon scenario and a modestincrease in soya cultivation is expected to bring relief to the poultry industry.Therefore I am hopeful that our country will be able to overcome the pandemic situationsoon rather than late. And this will help us to focus our efforts on the future growthopportunities.
I once again wish you and your family all the best and good health.
Anuradha J. Desai