In Wednesday’s trading session, the shares of a company engaged in various manufacturing activities in the poultry industry hit a 20% upper circuit at Rs. 2,191.4, after reporting financial results for Q1 FY24-25 with a rise in the net profit of 124.5 percent QoQ as well as 287.6 percent YoY.
The shares of Venky’s (India) Limited were opened in the green at Rs. 1,862.2, up by 2 percent, compared to its previous closing price of Rs. 1,826.2, with a market cap of Rs. 3,087 crores.
What’s the News:
The fluctuations in the share prices were observed after the company announced the financial results for Q1 FY24-25, through the recent filings with the stock exchanges on Wednesday during market hours.
The net profit jumped by 287.6 percent YoY to Rs. 75.2 crores in Q1 FY24-25, as against Rs. 19.4 crores in Q1 FY23-24, and on a quarter-on-quarter basis, it grew by 124.5 percent from Rs. 33.5 crores in Q4 FY23-24.
However, the company’s revenue from operations for Q1 FY24-25 stood at Rs. 808 crores, marking a 17.2 percent YoY decline from Rs. 976.4 crores in Q1 FY23-24, and a 9.8 percent decline quarter-on-quarter from Rs. 896 crores in Q4 FY23-24.
The profit margins of the poultry and poultry products segment for the June 2024 quarter were better due to improved realisations from the sale of day-old chicks and grown-up birds.
The margins of the Oilseed segment were affected on account of lower sales and lower raw material prices and also due to subdued realisations from the finished goods i.e., de-oiled cake and oil.
Also read
Venky’s reduced volatility in its business portfolio through diversification into non-volatile manufacturing activities like soya processing, animal health products, poultry feed, processed chicken products and hi-tech research-based production of SPF eggs.
Stock Performance
The shares of Venky’s (India) Limited have positive returns of nearly 14.4 percent in one year as well as around 12 percent returns year-to-date.
About the Company:
Venky’s (India) Limited operates in three business segments: poultry and poultry products involving broiler breeder operations, animal health
products and oilseed.
The company is a prominent supplier to many quick service restaurants (QSR) and international chains like Kentucky Fried Chicken (KFC), Pizza Hut, Tacobell, Burger Kings, McDonalds, Vista Foods etc.
It is prominently associated with B2B and B2C retail chains to sell Venky’s brand chicken products, like Walmart, Metro Cash and Carry, Star Bazar, Future Retail and regional chains in major cities of India.
Written by Shivani Singh
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