Poultry companies to log 5-6 pc revenue growth

by IANS |

Chennai, March 4 (IANS) Credit rating agency ICRA expects the revenue growth for its sample set of domestic poultry companies to improve mildly to about 5-6 per cent in FY2025 after an estimated modest Year-on-Year (YoY) growth of about 3-4 per cent in FY2024.

According to ICRA, the growth will be driven by demand improvement, increasing share of organised players and growing preference for value-added products.

“While broiler meat realisations continued to be strong till 7M FY2024 (YoY growth of about 2 per cent), they started tapering thereafter due to high placement and excess supply in key markets,” ICRA said in its recent report.

Subsequently, Q3 FY2024 witnessed a about 10% Quarter-on- Quarter (QoQ) drop in average realisations, resulting in overall flat average numbers in 9M FY2024 on a YoY basis. The same could revive gradually, as the oversupply scenario corrects over the next few months, ICRA said.

While realisations improved in 7M FY2024 following controlled supply and healthy demand, poultry companies’ earnings were further supported by softened feed costs, ICRA said.

Average maize prices during April-November 2023 decreased by about 9 per cent vis-à-vis FY2023. Likewise, soybean prices softened in the current fiscal and average prices in 9M FY2024 declined by about 14 per cent vis-à-vis FY2023. However, the realisations started tapering from November 2023 onwards and the grain prices, particularly maize, also started rallying since then, ICRA said.

Further, significant contraction in soybean harvest during the kharif season and delayed sowing of maize may result in a potential spike in feed costs and is likely to exert pressure on the margins of poultry companies over the next few quarters, ICRA said.

Latest News
After 10-yr stint in BJP, Haryana's Jat leader Birender Singh rejoins Congress Tue, Apr 09, 2024, 02:50 PM
PM Modi to address first public rally for LS polls in MP's Maoist-hit Balaghat Tue, Apr 09, 2024, 12:52 PM
Why India is seeing a rising trend of diseases Tue, Apr 09, 2024, 12:40 PM
IPL 2024: 'Chennai Super Kings should be called Chepauk Super Kings', says Aakash Chopra Tue, Apr 09, 2024, 12:37 PM
Real Madrid request UEFA permission to play Manchester City under a closed roof: Report Tue, Apr 09, 2024, 12:36 PM
IPL 2024: Jonny Bairstow ready to put best foot forward' vs former side SRH Tue, Apr 09, 2024, 12:36 PM
Two killed in road accident in J&K's Udhampur Tue, Apr 09, 2024, 12:33 PM
MVA cracks seat-share formula, Uddhav Thackeray grabs maximum Tue, Apr 09, 2024, 12:31 PM
Toronto, other Canadian cities go dark as millions watch total solar eclipse Tue, Apr 09, 2024, 12:28 PM
MSCI India index rebalancing could see inclusion of 18 stocks with inflow of $2.7 bn Tue, Apr 09, 2024, 12:18 PM
South Korean Prez vows to be among top 3 nations in AI technology Tue, Apr 09, 2024, 12:10 PM
Mobile messenger KakaoTalk's users fall below 45 million for 1st time: Report Tue, Apr 09, 2024, 12:09 PM
X employees facing arrest in Brazil: Elon Musk Tue, Apr 09, 2024, 12:06 PM
Sectors like capital goods, auto lead Sensex to new high Tue, Apr 09, 2024, 12:04 PM
Egypt, Jordan, France urge immediate ceasefire in Gaza Tue, Apr 09, 2024, 12:03 PM