Q2FY24 Results
Comparison of performance for six months ended 30/09/2023 with six months period ended 30/09/2022
Revenue (Consolidated)
- The total income decreased to INR 2,898 crores from INR 2,930
- The PBT increased to INR 270 crores from INR 197 crores (mainly due to decrease in the raw material costs and increase in other income)
Standalone Results
FEED DIVISION
- The total income increased to INR 2,415 crores from INR 2,352 crores in half-year ended FY23 due to increase in feed sales and other income.
- The PBT in HY FY22 increased to INR 212 crores from INR 130 crores in the corresponding period of the previous year, mainly due to decrease in raw material costs and increase in other income
SHRIMP PROCESSING DIVISION
The gross income for six months during FY24 was INR 491 crores as compared to INR 583 crores in corresponding six months’ period of the previous year. A decrease of INR 92 crores in the gross income during first six months of the FY24 is mainly decrease in quantity of sales by 1,144 metric tons
The PBT in six months FY24 is INR 63.60 crores as compared to INR 63.10 crores in the six months ended in FY23. The marginal increase in PBT is due to decrease in cost of raw materials consumed at ocean freight rates.
- No additional provision made to compensate for recall of the products (all the earlier provisioning is used up, 0.99 cr left )
Note : As regards the product liability claims for bodily injury caused by consuming company’s contaminated product under the recall, the company has submitted a revised claim for the claims received and settled by the company to the insurance company. The surveyor has confirmed that the claim will be processed by insurance company on or before 30th November 2023. Since the liability has been covered under the commercial general liability insurance policy, no provision has been made in the financial statements of the company.
Projections for the rest of the year
Feed :
On the basis of estimated shrimp production in 2023, the estimated feed consumption is about 10.5-11 lakh metric tons. The company’s feed sales during the previous year FY22 was about 5.41 lakh metric tons as compared to 4.73 lakh metric tons in FY21, an increase by 68,000 metric tons. However, the company’s estimated shrimp feed sales were 4.97 lakhs metric tons in FY23, down by 44,000 metric tons when compared with FY22. The company’s estimated production in sale of shrimp feed in the calendar year 2023 is about 4.9 lakh metric tons at the same level as in the previous year, when
the total Indian feed consumption is down by 15%. The company has been able to maintain its production and sales, though there was overall decrease in the country.
SHRIMP PROCESSING & EXPORT:
The countries vannamei shrimp exports in terms of value declined in FY23
compared to FY22 by 8.11% from $5,234.36 million to $4,809.99 million. The country’s overall exports of frozen shrimp in quantitative tons for FY23 was 7,11,099 metric tons as compared to 7,28,123 metric tons in FY22, a decline of 17,024 metric tons representing 2.34%. The company’s shrimp exports during the FY23 was about 12,497 metric tons as compared to 12,836 metric tons in the FY22, a decrease by 339 metric tons. It is estimated that the export during the FY24 would be around 12,000 metric tons.
- New Processing Plant and Cold Storage unit at Krishnapuram, East Godavari District with a capacity of 7,000 MT p.a. (Expecting commercial operations by Mar’2024 )
New Initiatives
- PET FOOD : Entering into JV with Bluefalo Pet Care Company Limited Thailand (51% by Avanti and 49% Bluefalo) - Market research is in progress about the demand for Pet products in Indian market (Aiming to launch to market by 1st Jan 2025)
- FISH FEED : Huge shortage in the domestic market , most of it is being exported to address this issue working on initiatiative to make it locally for captive consumption and sell in export markets, market research is in progress, an agreement is signed for tech. transfer with Thai Union Feedmill
Raw Material prices are stable , may go down in coming months due to new crop is coming into the markets
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