May 16, 2024

Q4 profit of Venky's India rose 32.8%

Venky's India reported a 32.8% jump in its fourth-quarter profit on May 10, benefiting from strong demand in its poultry products business amid easing costs.

The Pune, India-based poultry company's profit rose to ₹335.1 million (US$4 million) in the quarter ended March 31, from ₹252.3 million a year ago, it said in an exchange filing.

Venky's poultry and poultry-product business involves the production and sale of day-old chicks and adult broiler birds reared for consumption. Its revenue from operations fell 14.1% to ₹8.96 billion (US$108 million). However, a near 16% drop in its total expenses helped in pushing up the margins.

Venky's input costs, consisting of poultry feed ingredients, broiler chicks and eggs, fell 22.2% year-on-year. Revenue from its poultry business rose nearly 5%, while its mainstay oilseed business fell 30%.

The oilseed business, accounting for about 43% of Venky's total revenue, was impacted due to "unfavourable market conditions".

Shares in the poultry firm rose as much as 8% after the results. The stock dropped 21% in the March quarter.

- Reuters