Shares of Venky's India Ltd. rose to its highest in nine months as improving demand aided the profit and margin rebounded for the integrated poultry processing company in the quarter ended September.
Net profit jumped threefold over the year earlier to Rs 36.3 crore in the reported period, according to an exchange filing, aided by better realisations and lower input costs.
The company's revenue, however, fell 14% year-on-year to Rs 702 crore.
Other highlights (year-on-year)
- The Pune-based company posted an operating profit of Rs 57.7 crore compared with an operating loss of Rs 2.4 crore.
- Ebitda margin stood at 8.2%. The margin also rebounded as prices of maize—the key feed ingredient that forms 55% of the broiler feed—softened.
“A steady recovery seen in these quarters is expected to continue as the demand for poultry products is picking up gradually,” the company said in a post-earnings release.
Meanwhile, Venky's third solvent extraction and vegetable oil refinery project in Shrirampur is nearing completion, and the trial run is scheduled for the end of November 2020. The company said it's spending Rs 50 crore on this unit with a capacity of 1.8 lakh million tonnes per annum.
Shares of Venky's rose as much as 9% to Rs 1,730.7 apiece after the results were announced. The stock ended the session with gains of 4.5% at Rs 1,660, its fifth straight day of gains.
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