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News: Revenues de-grew 8% YoY to ₹ 82.3 crore on a higher base as last quarter had one time opportunity of ₹ 27 crore. excluding that the growth stood at ~35% driven by both Animal Healthcare and Poultry Healthcare. EBITDA grew ~23% YoY to ₹ 18 crore with 500 bps margin expansion to 21.5%. Animal Healthcare (48% of sales) grew 29% YoY to ₹ 39.9 crore driven by sales of vaccines for PPR and GPV (used to immunise cattle against Lumpy Skin Disease), good domestic trend in the dairy sector and sales of mineral supplements and intramammary products. Poultry Healthcare (50% of sales) grew 41% YoY to ₹ 41.3 crore on a lower base, driven by increased demand for eggs and poultry meat coupled with lower feed costs.
Views: The company, over the years has been consciously expanding Animal Healthcare footprint in order to de-risk from Poultry business which, although fetches better margins, is lumpy in nature. On the other hand, the Animal Healthcare is growing at a decent pace and is less volatile with consistent government and international vaccination tenders besides momentum in Animal medication. We continue to monitor progress on the Animal Healthcare front.
Impact: Positive