Avanti Feeds reported 6.33% growth in Sep-20 quarter top line sales revenues yoy at Rs1,131.62cr. The June quarter did not see any deep fall in sales the shrimp farming business that the company is into is largely global in nature and the demand was hardly impacted by the disruption. However, sales are already above pre-COVID levels.
For the Sep-20 quarter, the operating profits were up 20.6% at Rs143.83cr. This growth was achieved on lower material input costs and the costs growing slower than the growth in sales. This resulted in the operating margin or OPM expanding from 11.20% in the Sep-19 quarter to 12.71% in Sep-20 quarter.
Profit after tax (PAT) for the Sep-20 quarter was marginally down 1.26% at Rs125cr. That is more due to the tripling of the tax burden in the quarter and the losses from associate companies booked. PAT margins fell marginally from 11.90% to 11.05% in Q2.
Financial highlights for Sep-20 compared yoy and sequentially
|
|
Avanti Feeds |
|
|
|
|
Rs in Crore |
Sep-20 |
Sep-19 |
YOY |
Jun-20 |
QOQ |
|
Revenues |
1,131.62 |
1,064.30 |
6.33% |
955.40 |
18.44% |
|
Operating Profit |
143.83 |
119.25 |
20.61% |
119.66 |
20.20% |
|
Profit After Tax (PAT) |
125.02 |
126.61 |
-1.26% |
115.71 |
8.05% |
|
|
|
|
|
|
|
|
Diluted EPS (Rs) |
₹ 8.17 |
₹ 8.71 |
|
₹ 7.64 |
|
|
Operating Margins |
12.71% |
11.20% |
|
12.52% |
|
|
PAT Margins |
11.05% |
11.90% |
|
12.11% |
|
Key takeaways from the Sep-20 quarter results
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Avanti derives nearly 80% of its revenues from the cultivation and sales of shrimp feeds with the balance coming from processed shrimps. The higher taxes were due to the deferred tax credit in Sep-19 quarter due to shift in income tax methodology.
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In the first half of the year, the net cash generated from operating activities increased 50% on yoy basis purely on the back of better working capital management.
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