Avanti Feeds Ltd's Q4FY18 consolidated net profit declines 2.58% yoy to Rs83.47cr : Misses Estimates

The company’s consolidated revenue stood at Rs834.28cr, up 24.22% yoy and 18.1% qoq.

May 28, 2018 03:05 IST India Infoline Research Team

Avanti Feeds Ltd Q4FY18

Consolidated Results Q4FY18: (Rs. in cr)

Q4FY18 YoY (%)
Revenue 834.28 24.2
EBITDA 117.45 [7.1]
EBITDA Margin (%) 14.1 [473]
Net Profit (adjusted) 83.47 [2.6]
***EBITDA margin change is bps
View

Buy

Reco. Price

2046

Last updated on

16-May-2018

Avanti Feeds Ltd's consolidated revenue for Q4FY18 came in at Rs834.28cr, up by 24.2% yoy. The consolidated operating profit for the quarter came in at Rs117.45cr, which declined by 7.1% yoy. The EBITDA margin declined significantly by ~473bps yoy to 14.1% in Q4FY18. The consolidated adjusted net profit stood at Rs83.47cr for Q4FY18, down by 2.6% yoy. The revenue and PAT for FY18 were in-line with street estimates. However, the operating profits for FY18 missed the street estimates by 9% yoy.

• Gross profit margin of the company declined significantly by ~507bps yoy to 23.2% in Q4FY18. This is on account of likely fall in the realization levels.
• The employee benefits expenses and other expenses increased by 17.5% and 21.1% yoy to Rs25.53cr and Rs50.93cr respectively.
• Segment revenue from shrimp feed business increased by 19.8% yoy to Rs724.90cr. However, segment EBIT declined by 10.4% yoy to Rs101.96cr in Q4FY18. The EBIT margin declined significantly by ~475bps to 14.1% in Q4FY18.
• Processed shrimp segment's revenue increased by 64.7% yoy to Rs109.21cr in Q4FY18. However, segment EBIT declined by 11.3% yoy to Rs7.80cr in Q4FY18. The EBIT margin declined significantly by ~612bps to 7.1% in Q4FY18.
• Total debt of the company (long and short term) reduced to ~Rs5.5cr as on March 31, 2018 as against ~Rs13.5cr as on March 31, 2017.
• Board of directors recommended dividend of Rs6 per equity share for FY18.

Technical View:

Avanti Feeds Ltd is currently trading at Rs. 1,892.70, down by 58.3 points or 2.99% from its previous closing of Rs. 1,951 on the BSE.
The scrip opened at Rs. 1,902 and has touched a high and low of Rs. 1,902 and Rs. 1,854.40 respectively. So far 45,270 (NSE+BSE) shares were traded on the counter. The stock is currently trading above its 200 DMA.

Related Story