Avanti Feeds (512573) Q2 24/25 earnings summary

Executive summary

• Q2 FY25 consolidated revenue was ₹135,509 lakhs, up 6% year-over-year, with PAT up 47% to ₹11,365 lakhs and EBITDA up 39% to ₹1,775 million, reflecting strong operational performance and margin expansion.

• H1 FY25 revenues reached ₹28,614 million, up 1% year-over-year, with EBITDA rising 25% to ₹3,723 million and PAT up 31% to ₹2,590 million.

• Board approved unaudited standalone and consolidated financial results for the quarter and half year ended September 30, 2024, and key board changes including a new Non-Executive Director and promoter reclassification.

• Shrimp feed and processing segments delivered strong volume and margin gains, with shrimp feed revenue at ₹107,519.76 lakhs and processed shrimp at ₹27,576.56 lakhs in Q2 FY25.

• Cash and cash equivalents increased to ₹5,799.11 lakhs as of September 30, 2024, with no new borrowings and continued focus on internal accruals.

Financial highlights

• Q2 FY25 EBITDA margin improved by 313 bps to 13.1%, and PAT margin rose by 249 bps to 9.0%.

• EPS for Q2 FY25 increased to ₹8.34 from ₹5.45 year-over-year.

• H1 FY25 ROCE stood at 17.64% and ROE at 17.97%, with net debt to equity at zero and interest coverage at 306x.

• Inventory days increased to 84 and receivables days to 23 in H1 FY25.

• Gross margin improved year-over-year, with total expenses at ₹123,492.64 lakhs for Q2 FY25.

Outlook and guidance

• FY24-25 expected to be challenging for aquaculture due to weather and global demand, but better capacity utilization and government support are anticipated.

• Feed sales for FY25 expected to be similar to FY24, with potential for better margins if raw material prices remain stable.

• Continued focus on aquaculture sustainability and operational reliability.