Poultry firm Venky's India posts drop in fourth-quarter profit on shrinking margins
May 12 (Reuters) - Venky's India (VENK.NS), opens new tab posted a 60% drop in fourth-quarter profit on Monday, as its poultry business margins shrank due to lower price realizations.
The Pune-based poultry firm's profits dropped to 133 million rupees ($1.6 million) in the quarter ended March 31 from the year-ago 335.1 million rupees.
Its poultry and poultry products business, which accounts for about 54% of the total revenue, reported a 89% drop in profit before tax and interest.
The poultry business is involved in the production and sale of day-old broiler and layer birds.
The company said its animal health products segment's profit before tax and interest grew 5% year-on-year, and the oilseed segment business more than doubled in the reported quarter.
Venky's sells edible oil obtained from processing oilseed such as soy, while the by-product, the de-oiled cake, is sold or used as poultry feed.
The firm's overall revenue from operations fell 5.9% to 8.43 billion rupees.
The poultry firm said it will foray into the ready-to-cook spices market with ready-mix powders and that it expects to begin commercial production by the end of the first quarter of fiscal year 2026.
The project will cost about 160 million rupees and will be fully funded through internal accruals.
The company will also expand capacity for its specific Pathogen free (SPF) eggs production unit for 700 million rupees.
Venky's India stock fell about 0.5% after the results.
($1 = 84.6880 Indian rupees)
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