May 31, 2012

Venky's Q4 net income rises 17% on year

The fourth quarter net profit of Venky's India grew 17% on-year to INR18 crore (US$3.2 million), sending shares of the processed chicken maker up 16% on Tuesday (May 29).

The Pune-based company's net sales in January-March were up 23% to INR258 crore (US$46 million). On a sequential basis, Venky's net profit was up six-fold, while net sales were up 7%.

The company's net profit was boosted by higher income of INR10 crore (US$1.8 million), compared with INR2 crore (US$356,000) in the year ago quarter. Its tax expense in the fourth quarter was also lower at INR5.5 crore (US$979,000), from INR7 crore (US$1.2 million) a year ago.

"During the quarter, the poultry and poultry products segment registered better performance as compared to the quarter ended December 31, due to improved realisations from sale of day old chicks and grown up birds," Venky's also said.

In January-March, Venky's revenue from poultry and poultry products rose 33% on-year to INR199 crore (US$35.5 million). Animal Health products revenue was up 20% to INR24 crore (US$4.3 million). But revenue from oilseeds fell 9% to INR64 crore (US$11.4 million).

Venky's shares were up 15.6% at INR392 (US$69.8 million) on NSE in afternoon trade.