Avanti Feeds Shares Slipped ~2% Despite Reporting Growth in Revenue and PAT

Avanti Feeds shares fell ~2%, reaching a day plow of ₹711.05 at 11:50 AM, after opening at ₹749.95. The fall in Avanti Feeds shares slipped despite the company recording a growth of 3.23% to ₹744 after reporting an 86.59% increase in consolidated net profit to ₹135.21 crore, alongside an 8.98% rise in revenue from operations to ₹1,365.8 crore for Q3 FY25, compared to Q3 FY24. Profit before tax for Q3 FY25 saw a 59% jump to ₹183.98 crore, up from ₹115.71 crore in Q3 FY24

Segment-wise, revenue from shrimp feed was ₹1,041.6 crore (an 11.86% year-on-year increase), processed shrimp revenue was ₹321.02 crore (a 0.01% YoY increase), and shrimp hatchery revenue reached ₹3.40 crore (a 133.83% YoY rise).

For the nine months ending in FY25, the company’s net profit grew by 48.99% to ₹377.05 crore, with a 3.46% increase in revenue from operations, reaching ₹4,227.1 crore compared to 9M FY24.

Avanti Feeds manufactures prawn and fish feeds and processes and exports shrimp. Its main products are shrimp feed and processed shrimp.

Seafood Industry Overview

Indian seafood exports reached a record 17,81,602 MT valued at ₹600 billion in FY23-24, with frozen shrimp remaining the leading export item. Demand is expected to rise, further boosting shrimp farming operations. The fisheries sector is seen as a growing industry, crucial to many livelihoods, and the government plans to generate 55 lakh jobs through various initiatives.

The latest budgetary allocations demonstrate the government’s commitment to developing this sector. Financial measures, such as Nucleus breeding centers for shrimp broodstock, aim to reduce dependence on imported broodstock, lowering hatchery costs while ensuring better seed quality.

To improve production capabilities and infrastructure, NABARD will cover up to 80% of project costs for aquaculture farmers, with an interest subsidy of up to 3%. The government’s financial support, as outlined in the Union Budget 2024-25, signals strong growth prospects for the aquaculture industry in the coming years.

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