Dear Shareholders,
As I have mentioned in my last year's message to the Shareholders,
Venky's faced a subdued trend in its financial performance during the financial year
2023-24. High feed prices and lower realisations from the sale of poultry and poultry
products have resulted in lower profit margins. Though the overall sales turnover of the
Company has come down as compared to the previous year, there was a marginal improvement
in profits. While the performance of the poultry and poultry products segment and Animal
Health Products segment was satisfactory in a challenging environment, Venky's
demonstrated resilience in the face of decline in demand and realisations in the Oilseed
segment. Continuation of various cost optimisation measures is expected to improve the
Company's performance as the poultry sector's performance also improves in
general.
Financial year 2024-25 started with optimistic note, as a result of
improvement in the realisations in the initial months, though the feed prices are still on
a higher side. We are watchful on the feed prices front and hope that the overall
performance of the Company will be better in the current year with the improvement in
realisations of poultry and poultry products.
The Company's new manufacturing unit of the Animal Health Products
segment commenced commercial production in March, 2024. This state of the art
manufacturing unit is expected to meet the stringent regulatory requirements and improve
the overall product portfolio and strengthen the profitability and sustainability.
Having completed major capex requirements in the last couple of years,
no major capex is foreseen in the immediate future. With adequate capacities available,
Venky's will continue to look for opportunities to derive maximum benefits in all the
three segments.
In closing, I would like to express my heartfelt gratitude for the
continued support and trust of all our shareholders. I am sure, together we can overcome
the challenges of the poultry sector and shape a more prosperous future for all. We are on
a strong foundation established by our Late Chairman Padmashree Dr. B.V. Rao, whose
farsighted vision, meticulous planning and creation of high standards of quality
infrastructure and superior customer service has paved a competitive edge in a growing
market for poultry products.
| With warm regards. |
| Anuradha J. Desai |
| Chairperson |