Venky's shares hit 20% upper circuit as Q1 net profit soars nearly 300% to Rs 75 crore

Venky's shares hit 20% upper circuit as Q1 net profit soars nearly 300% to Rs 75 crore

Venky's (India) shares hit 20 percent upper circuit on August 7 as the poultry firm reported nearly 300 percent surge in net profit at Rs 75 crore for the quarter ended June 30, 2024 due to input costs and steady sales in its poultry business. It reported net profit of Rs 19 crore in the year-ago period.

At 1:35 pm on August 7, Venky's (India) shares were trading 20 percent higher at Rs 2,191.65 apiece.

However, the company's revenue fell 17 percent to Rs 808 crore in Q1FY25 as against Rs 976 crore in Q1FY24, dragged down by a 51 percent drop in its oilseed segment.

Its EBITDA rose to Rs 103 crore in June quarter as against Rs 31 crore a year ago.

The company's margins expanded to nearly 13% in June quarter from 3.2 percent in Q1FY24.

The company's input costs, which include costs of poultry feed ingredients such as soy and maize, slumped 33 percent, pushing overall expenses lower by 25 percent.

Venky's sells edible oil obtained from processing oilseed such as soy, while the by-product de-oiled cake is sold or used as poultry feed.

The oilseed segment's margins were hit by lower sales and subdued realisations from finished goods, including de-oiled cake and oil, the company said.

With inputs from Reuters