BSE: 523261 | NSE: VENKEYS | ISIN: INE398A01010
Market Cap: [Rs.Cr.] 372.03 | Face Value: [Rs.] 10
1. Industry Structure and Development:
The global economic environment continued to remain challenging during the financialyear 2013-14 with slower than expected growth. In line with the global trend, the Indianeconomy has also slowed down and witnessed desceleration in GDP growth rate by registeringa growth of 4.7% as compared to 5% in the previous year. Persistently high inflation,higher cost of borrowing, high fiscal deficit level and the subdued industrial growth arenot expected to turnaround in the immediate future, signaling that the recovery ineconomic growth will be at a slower pace. Given this backdrop the poultry industrycontinued to grow at satisfactory rates-both in broilers and layers.
The poultry industry is expected to maintain its growth rates in the coming years aswell. Presently, the poultry industry is a Rs.75,000 crore industry that provides directand indirect employment to 5.00 million people and also supports the economy of over 2crore agricultural farmers, especially the maize and soya grower, dependent on thisindustry. 75% to 80% of the cost of production in the poultry industry consists of feedingredients, like maize and soya. With an annual production of 65,000 million eggs, Indiaranks second in the world in egg production. The broiler production is estimated at 3.5million tons of chicken meat and India ranks 3rd in the world.
2. Opportunities, Threats, Risks and Concerns:
The vast gap between our present per capita consumption (54 eggs and 3.5 kg. of meat)and National Institute of Nutrition (NIN) recommended level (180 eggs and 11 kg of meat)offers an excellent opportunity for the growth of poultry industry at least for the nexttwo decades. Factors like increasing disposable income and rapid urbanization in most partof India are expected to contribute to the growth in demand for poultry products.
However, lack of adequate cold storage facilities at key locations and retailinfrastructure are the main reasons for slower than anticipated growth of the processingsegment of poultry industry. Higher volatile behaviour of feed ingredients prices is alsoone of the concerns of the poultry industry.
3. Segmentwise Performance:
a. Poultry and Poultry Products
The Company's major business segment is poultry and poultry products which consists ofproduction and sale of day old broiler and layer chicks, specific pathogen free eggs,processed chicken products and poultry feed. In 2013-14 this segment's turnover was Rs.1,00,172 Lacs as compared to Rs. 92,607 Lacs in the last year. The profit before tax andinterest of this segment was Rs. 2,822 Lacs as compared to Rs. 1,524 Lacs in the previousyear.
b. Animal Health Products
The Company has its animal health products manufacturing facility at Pune. Thissegment's sales turnover was Rs. 12,324 Lacs as compared to Rs. 10,683 Lacs. Profit beforetax and interest was Rs. 1,679 Lacs as against Rs. 1,502 Lacs in the last year.
This segment registered a sales turnover of Rs. 65,255 Lacs as compared to Rs. 46,347Lacs last year. Profit before tax and interest was Rs. 2,968 Lacs as against Rs. 4,343Lacs in the previous year.
The outlook for the year 2014-15 is expected to be better in terms of overall growthfor the Company. However, reduction in quantum of rain fall and uneven weather conditionsin many parts of the country may increase the cost of feed ingredients, posing challengesto the profit margins.
5. Internal Control Systems and their adequacy
The internal control system is designed to ensure that all the financial and otherrecords are reliable for preparing financial statements and for maintaining accountabilityof the assets. The Company has a proper and adequate system of internal controls to ensurethat all assets are safeguarded and protected against loss from unauthorised use ordisposition and that transactions are authorised, recorded and reported correctly.
Commensurate with the size of operation, your Company has Internal Audit departmentwhich continuously reviews the internal control system by an exclusive programme ofInternal Audit. The significant findings are then discussed by the Audit Committee ofDirectors and corrective measures are initiated. The Audit Committee also monitors theimplementation of recommendations made by it.
6. Discussion on Financial Performance with respect to Operational Performance:
The turnover of the Company registered growth of 22% over the last year from Rs.1,42,911 Lacs to Rs. 1,73,738 Lacs. The profit before tax from operations increased by 15%from Rs. 3,920 Lacs to Rs. 4,517 Lacs.
The long term borrowings of the Company during the year increased by about 58% from Rs.14,653
Lacs to Rs. 23,174 Lacs. These funds are being utilized for the expansion plans of theCompany. The short term borrowings of the Company during the year were increased by about120% from Rs. 16,091 Lacs to Rs. 35,599 Lacs. Short term borrowings are being utilised formeeting operational expenditure and working capital requirements. Interest cost of theCompany has increased by 84% from Rs. 2,314 Lacs to Rs. 4,260 Lacs.
Keeping in view liquidity, returns and also safety, the Company has invested certainfunds in bank deposit and debt/liquid schemes of mutual funds.
7. Material Development in Human Resources/Industrial Relations front, including numberof people employed:
In line with VH Group's corporate philosophy, the Human Resource is considered as themost valuable resource in the Company. The focus is on developing a performance culturewith high standards of efficiency and innovation. Employee relations at all levelscontinue to remain cordial. As on 31st March, 2014 the Company has 4,418employees.
|12-Nov-14||Venky's down after Q2 result|
|12-Mar-14||Venky's (India) gains on board's nod to acquire poultry business from holding firm|
|12-Mar-14||Venkys (India) acquires business operations in Northern India|
|26-Feb-14||Venky's (India) reports net profit of Rs 10.43 crore in the December 2013 quarter|
|25-Feb-14||Venky's (India) net profit rises 205.19% in the September 2013 quarter|
|25-Feb-14||Venky's (India) net profit declines 65.97% in the June 2013 quarter|
|24-Dec-14||Spenta stock down 5%|
|24-Dec-14||GIC arm to acquire 34.2 % stake in Nirlon|
|22-Dec-14||JBF Industries board approves fund raising plan|
|16-Dec-14||JBF Industries Board Meeting on Dec 22; stock down 5%|
|12-Dec-14||Bombay Dyeing stock surges 5%... may develop land at lower Parel|
|08-Dec-14||Welspun India plans to invest Rs25 billion: Report|
Anuradha J Desai , Chairperson
B Venkatesh Rao , Vice Chairman
B Balaji Rao , Managing Director
Jitendra M Desai , Director
Company Head Office / Quarters:
S No 114/A/2 Pune-Sinhagad Rd,
Phone : Maharashtra-91-020-24251530-41 / Maharashtra-
Fax : Maharashtra-91-020-24251077/24251060 / Maharashtra-
E-mail : email@example.com
Web : http://www.venkys.com
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|Scheme Name||No. of Shares|
|Reliance Equity Opportunities Fund (G)||2,77,235|
|ICICI Pru Growth Fund - Series 1 (D)||2,31,305|
|Reliance Small Cap Fund (G)||2,16,432|
|Goldman Sachs CNX 500 Fund (G)||70|
|Reliance Equity Opportunities Fund (G)||2,82,365|
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