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  • Aug 16, 2017 - Avanti Feeds: Robust Performance, Bigger Market Share

Avanti Feeds: Robust Performance, Bigger Market Share
Aug 16, 2017

Avanti Feeds has announced the first quarter results of financial year 2017-2018 (1QFY18). The company has reported a 37.8% YoY increase in the topline while the bottomline increased by 199.1% YoY. Here is our analysis of the results.

Performance summary
  • The topline increased by 37.8% YoY led primarily by the Shrimp feed division. The shrimp processing division grew by 40% YoY while the Shrimp processing business rose by 25% YoY. The strong growth is on the back of favourable international prices and strong demand from the US.
  • Operating profits increased by whopping 195.9% YoY. Operating profit margin increased by 12% and stood at 22.5% during the quarter. This is due to benign increase in raw material cost and other expenses compared to revenue growth during the quarter.
  • Net profits sharply increased by 199.1% YoY. This is on the back of an increase in operating profit and other income.

    Consolidated Financial Snapshot
    (Rs m) 1QFY17 1QFY18 Change
    Net sales 7,244 9,982 37.8%
    Expenditure 6,483 7,732 19.3%
    Operating profit (EBDITA) 760 2,250 195.9%
    Operating profit margin (%) 10.5% 22.5%  
    Other income 18 62 234.4%
    Interest 2 6 215.8%
    Depreciation 27 41 50.0%
    Profit before tax 750 2,265 202.0%
    Tax 258 777 201.5%
    Effective tax rate 34.4% 34.3%  
    Profit after tax/(loss) 492 1,488 202.3%
    Share of net profit /(loss) of associates -2 1  
    Minority Interest   -22  
    Net profits 490 1,467 199.1%
    Net profit margin (%) 6.8% 14.7%  
    No. of shares (m)   45.4  
    Fully diluted EPS (Rs)*   68.0  
    P/E (x)*   28.5  

    *Based on trailing 12-months earnings

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