Key highlights from Avanti Feeds Ltd (AVANTIFEED) Q2 FY23 Earnings Concall
- [00:09:07] AVANTIFEED said that USFDA removed cooked shrimp products from FDA import alert list from 21st October, 2022, which will enable AVANTIFEED to accelerate the exports of value-added products (cooked shrimps) in USA.
- [00:19:03] Depesh Kashyap of Equirus Capital asked about the average RM prices of fishmeal, soymeal and the wheat for 2Q23. Santhi Latha GM Finance said that fishmeal is around INR111, same as 1Q23. Soya was around INR52 and wheat flour has gone up to INR29. But right now wheat flour is about INR33-34.
- [00:21:11] Depesh Kashyap of Equirus Capital enquired if the margins are expected to go down further in 3Q23. C Ramachandra Rao CFO replied that it depends on the soya price. If it comes down there should not be much variance in margin.
- [00:22:54] Depesh Kashyap of Equirus Capital also asked about the reason for consolidated employee cost increasing by INR15-16 crore YoY. C Ramachandra Rao CFO said that it’s largely due to change in formula done for management remuneration and also due to the new employees of the new feed farm.
- [00:23:22] Depesh Kashyap of Equirus Capital asked that if the company is still expecting decline in processing volumes despite US FDA clearance. Alluri Nikhilesh ED answered that the company needs to wait and watch on this and a definite answer cannot be given.
- [00:24:51] Depesh Kashyap of Equirus Capital asked about the reason for delay in starting the feed plant. C Ramachandra Rao CFO replied that some govt. clearance is awaited. But it’s ready for production.
- [00:35:33] Harsh Dedhia asked about the marketing strategy in the non-US markets. Alluri Nikhilesh ED said that it’s always AVANTIFEED’s strategy to diversify from US market. The company is also working on launching products focused on other Asian markets to reduce further reliance on US markets. However, AVANTIFEED added it will continue to work in US markets with same aggression, but also develop new markets.
- [00:37:43] Harsh Dedhia also enquired about the realizations of non-US markets and what kind of shrimps the company is selling. Alluri Nikhilesh ED replied that depending on the requirement, the company is selling all product types to all markets. To China, it’s mostly basic commodity shrimp, but for remaining markets, AVANTIFEED is selling almost all products.
- [00:50:18] Depesh Kashyap with Equirus asked about the production levels in Chinese market. Alluri Nikhilesh ED clarified that due to lockdowns in China, demand is a problem. But AVANTIFEED feels China is still sitting on a lot of inventory even now. AVANTIFEED expects China to recover post lockdowns and should become a dominant market for India in the longer term.
- [00:52:32] Chockalingam N from ICICI enquired about the proportion of cooked shrimps the company sells currently. Alluri Nikhilesh ED clarified that currently the cooked shrimp is about 16%, which was 30% before. However, AVANTIFEED expects to accelerate the pace going forward.
- [00:53:37] Chockalingam Narayanan from ICICI asked that on a YoY basis, what quantum of increase in employee cost in crores is relating to change in management remuneration and new plant. Santhi Latha GM Finance replied that around INR9 crores (1H23) is towards the managerial remuneration and INR3 crores towards the employee benefit, the new plant. But new plant employees are there only for the 3 months.
- [00:55:06] Chockalingam N of ICICI enquired that with container rates coming down, if AVANTIFEED is seeing the benefit of it on the freight cost in processing business. Alluri Nikhilesh ED said the company in 2Q23 paid an average of $12,000 for freight vs. $7,000 last year. But now prices have started coming down. So in 3Q23, lower freight costs can be seen.
- [00:58:30] Chockalingam Narayanan from ICICI asked about the progress with regards to the PLI policy. Alluri Nikhilesh ED replied that AVANTIFEED did land acquisition and also is filling up the land to get it to a level before the start of civil activities in December.
Cochin Shipyard Limited (NSE:COCHINSHIP) Q4 FY22 Earnings Concall dated May. 26, 2022 Corporate Participants: Madhu S Nair -- Chairman & Managing Director Jose V J -- Director Finance Analysts: Vastupal Shah
Can you guess the name of the company that was listed during the IPO frenzy in 2020 and is the second largest player in the Indian municipal waste management industry?
“Hey, how is the market doing today?” “Oh!, its falling tremendously since morning” I am sure news like these might be a common topic of discussion for you nowadays. Interestingly,