Avanti Feeds (512573) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 consolidated revenue was INR 15,063 million, down 3% year-over-year, while net profit rose 20% to INR 1,377 million, with EPS increasing to INR 9.4 per share from INR 7.8 per share year-over-year.

• Q1 FY25 gross income was INR 1,541 crores, up 16.7% sequentially but down 2.84% year-over-year.

• Feed sales volume increased sequentially but declined year-over-year due to adverse weather and disease impacting shrimp culture.

• Board approved unaudited standalone and consolidated financial results for the quarter ended June 30, 2024; auditors found no material misstatements.

Financial highlights

• Q1 FY25 consolidated revenue: INR 15,063 million (Q1 FY24: INR 15,866 million); net profit: INR 1,377 million (Q1 FY24: INR 1,126 million); EPS: INR 9.4 (Q1 FY24: INR 7.8).

• FY24 consolidated revenues grew 6% year-over-year to INR 53,689 million; FY24 PAT rose 26% to INR 3,938 million.

• Shrimp Feed segment Q1 FY25 revenue: INR 12,667.68 million; Processed Shrimp: INR 2,336.89 million.

• Q1 FY25 EBIT rose 15% year-over-year to INR 1,803 million.

• Standalone EBITDA margin improved, with profit before tax at INR 1,533.43 million in Q1 FY25 vs INR 1,186.50 million in Q1 FY24.

Outlook and guidance

• Feed sales volumes expected to recover in coming quarters if climatic conditions and shrimp prices remain stable.

• Government initiatives and increased budget allocation to the fisheries sector are expected to support aquaculture growth.

• Shrimp export guidance for FY25 is 16,000 metric tons.

• FY25 expected to be challenging for aquaculture due to global demand and production uncertainties.