Share price of this small-cap stock engaged in various manufacturing activities in the poultry industry moved up by nearly 8 percent on BSE to hit an intraday high at Rs. 1,895.95 in the trading session of Friday, after reporting financial results with a rise in net profit by 32.8 percent YoY.
With a market capitalisation of Rs. 2,585.7 crore, at 01:33 p.m., the shares of Venky’s (India) Limited were trading in the green at Rs. 1,835.45, up by 4.5 percent.
The fluctuations in the share prices were observed after the company announced the financial results for Q4 FY23-24 and FY24, through the recent filings with the stock exchanges on Friday.
The company witnessed a rise in the net profit by 32.8 percent YoY from Rs. 25.23 crore in Q4 FY22-23 to Rs. 33.51 crore in Q4 FY23-24. On a quarter-on-quarter basis, the PAT increased from a loss of Rs. 7.94 crore in Q3 FY23-24 to a profit of Rs. 33.51 crore in Q4 FY23-24.
However, the revenue from operations slumped by 6 percent QoQ to Rs. 896 crore in Q4 FY23-24 from Rs. 953.2 crore in Q3 FY23-24, and decreased by 14 percent YoY from Rs. 1,042.5 crore in Q4 FY22-23 to Rs. 896 crore in Q4 FY23-24.
The sales turnover and margins of the company’s oilseed segments were affected due to unfavourable market conditions, while the performance of the Animal Health Products segment has been satisfactory.
Venky’s has successfully reduced volatility in its business portfolio through diversification into non-volatile manufacturing activities like soya processing, hi-tech research-based production of SPF eggs, animal health products, processed chicken products and poultry feed.
For FY23-24, the combined sales turnover of non-volatile or less volatile manufacturing activities was ~Rs. 2,403 crore, that is, 65 percent of the total sales turnover of the company, while the remaining 35 percent of sales i.e., Rs. 1,335 crore came from the sale of broiler day old chicks, layer day old chicks, broiler hatching eggs and grown up broiler birds.
Further, the Board of the company has recommended a dividend of Rs. 7.0 per share for the year ended 31st March, 2024, and will be paid after approval of shareholders in the ensuing Annual General Meeting.
The company has delivered positive returns of about 13.8 percent in the last one year. However, it has given negative returns of 10.5 percent in the last six months, and around 7.13 percent of negative returns, so far in 2024.
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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