Chennai, March 4 (IANS) Credit rating agency ICRA expects the revenue growth for its sample set of domestic poultry companies to improve mildly to about 5-6 per cent in FY2025 after an estimated modest Year-on-Year (YoY) growth of about 3-4 per cent in FY2024.
According to ICRA, the growth will be driven by demand improvement, increasing share of organised players and growing preference for value-added products.
“While broiler meat realisations continued to be strong till 7M FY2024 (YoY growth of about 2 per cent), they started tapering thereafter due to high placement and excess supply in key markets,” ICRA said in its recent report.
Subsequently, Q3 FY2024 witnessed a about 10% Quarter-on- Quarter (QoQ) drop in average realisations, resulting in overall flat average numbers in 9M FY2024 on a YoY basis. The same could revive gradually, as the oversupply scenario corrects over the next few months, ICRA said.
While realisations improved in 7M FY2024 following controlled supply and healthy demand, poultry companies’ earnings were further supported by softened feed costs, ICRA said.
Average maize prices during April-November 2023 decreased by about 9 per cent vis-à-vis FY2023. Likewise, soybean prices softened in the current fiscal and average prices in 9M FY2024 declined by about 14 per cent vis-à-vis FY2023. However, the realisations started tapering from November 2023 onwards and the grain prices, particularly maize, also started rallying since then, ICRA said.
Further, significant contraction in soybean harvest during the kharif season and delayed sowing of maize may result in a potential spike in feed costs and is likely to exert pressure on the margins of poultry companies over the next few quarters, ICRA said.
–IANS
vj/dan
Disclaimer
The information contained in this website is for general information purposes only. The information is provided by TodayIndia.news and while we endeavour to keep the information up to date and correct, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the website for any purpose. Any reliance you place on such information is therefore strictly at your own risk.
In no event will we be liable for any loss or damage including without limitation, indirect or consequential loss or damage, or any loss or damage whatsoever arising from loss of data or profits arising out of, or in connection with, the use of this website.
Through this website you are able to link to other websites which are not under the control of TodayIndia.news We have no control over the nature, content and availability of those sites. The inclusion of any links does not necessarily imply a recommendation or endorse the views expressed within them.
Every effort is made to keep the website up and running smoothly. However, TodayIndia.news takes no responsibility for, and will not be liable for, the website being temporarily unavailable due to technical issues beyond our control.
For any legal details or query please visit original source link given with news or click on Go to Source.
Our translation service aims to offer the most accurate translation possible and we rarely experience any issues with news post. However, as the translation is carried out by third part tool there is a possibility for error to cause the occasional inaccuracy. We therefore require you to accept this disclaimer before confirming any translation news with us.
If you are not willing to accept this disclaimer then we recommend reading news post in its original language.
