Venky’s (India) Ltd (NSE: VENKEYS) Q4 2025 Earnings Call dated May. 13, 2025
Corporate Participants:
Unidentified Speaker
Rohan Bhagwat — Company Secretary
J. K. Handa — Chief Financial Officer
Vijay Tijare — General Manager, Poultry Segment
P.G. Pedgaonkar — Poultry Segment
Deepak Khosla — General Manager, AHP Segment
N.K. Toshniwal — General Manager, Oil Seed Segment
Probal Sen — Equity Research
Pooja — Operator
Analysts:
Unidentified Participant
Viraj Mehta — Analyst
Keshav Garg — Analyst
Kiran — Analyst
Harsh Shah — Analyst
Nayan Agarwal — Analyst
Amit Agicha — Analyst
Pranay Khandelwal — Analyst
Akhil Parekh — Analyst
Madhur Rathi — Analyst
Vijay Gupta — Analyst
Vanit Singh — Analyst
Ankit Gara — Analyst
Presentation:
Pooja — Operator
Ladies and gentlemen, good day and welcome to the Q4 and FY25 earnings conference call of Venkies India Limited hosted by ICICI Securities Limited. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call please signal an operator by pressing Star then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Prabal Sen from ICICI Securities Limited. Thank you. And over to you, sir.
Probal Sen — Equity Research
Thank you, Pooja. I welcome all of you and appreciate the time taken to attend this Q4, FY25 and FY25 result. Call of thank yous. With us we have the distinguished management from the company including Mr. J.K. handa who’s the CFO. Mr. Rohan Bhagguk, the company’s secretary and the leaders from the respective segments. Mr. N.K. toshriwal from the oilseed segment, Dr. Vijay Tijare and Dr. P.G. pedgaunkar from the poultry segment and Mr. Deepak Khosla from the AHP segment to handle the call from the management side. Without further ado, I’ll hand over to the management for closing remarks and then we can get into the Q and A.
Sir, over to you.
Deepak Khosla — General Manager, AHP Segment
Thank you, Mr. Prabhal Sen. A very good afternoon and thank you all for joining us today for the conference call of Venkies India Limited. The company had published financial results for the quarter and year ended 31st March 25th along with the information for investors on 12th May. I hope you all have gone through the same today. We have with us the unit heads to answer all your queries in respect of their respective segments and the area of operations. Before we start discussing the company’s performance I would like to mention that some statements made in today’s discussion may be forward looking in nature and may involve risks and uncertainties.
After the end of this call, in case you have any further questions please feel free to reach out to the investor relations team. I will now hand over the call to Mr. Jeevan Handa, our CFO to make the opening comments. Over to you, Mr. Handa.
J. K. Handa — Chief Financial Officer
Good afternoon and a very warm welcome to all our shareholders and investors. I am Jeevan Handas, cfo. We are meeting today to discuss on the Venki earning call for the quarter ended March 25th. Quarter and year ended March 25th. I hope you have gone through the audited results and also the detailed information of two investors. For the quarter ended March 25, the company’s financial performance was affected mainly due to the unexpected fall in the profit margins of the poultry and poultry products segment. Sales turnover of this segment was on the expected line. However, profit margins were affected which was mainly due to Kumbh Mela which was lasted for 30 to 45 days.
In the northern region wherein major operation of the company is located, the animals health products segment has registered satisfactory performance. Performance of oilseed segment has started showing improvement. For the year as a whole the performance is somewhat satisfactory. But for the fourth quarter the overall financial performance would have been better. Far better. As compared to March 24th. As on 31st March 25th, the cash and cash equivalent is Rupees 16.75 crores. Against last year of 18.83 crores. Company’s debt position is of Rupees 165.14 crore whereas the last year it was 167.51 crores. With this briefing, our senior management team is available here to answer all your questions.
You may go ahead with the question. Thank you.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press Star and one on their touchstone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Viraj Mehta from Enigma Investments. Please go ahead.
Viraj Mehta
Yeah. Hi sir. Sir, can you tell us what was the average realization for broiler and Doc for this quarter vis a vis what was it last quarter and the same quarter last year?
P.G. Pedgaonkar
Yeah. With regard to broiler bird realization, if we compare Q4 of 2425, the broiler bird realization was close to 78 rupees per kg as against 87 rupees of Q4.24. With regard to chick realization, it was 39 rupees for Q4.25 as against 35 of Q4.24.
Viraj Mehta
Right. And sir, as far as right now the summer has started and we have seen improvement in pricing. So can you tell us what is the trend right now.
P.G. Pedgaonkar
With regard to the trend of Q1 or rather I can say for the month of April which has recently. I mean we have completed April. The realization for broiler bird was not satisfactory because of various reasons. One of the reasons was there was a panic sale because of some mortality on heat Waves also. So the realization overall reported for the month of April was to the tune of 80 to 81 rupees. And the chick realization was close to 38 rupees for the month of April.
Viraj Mehta
Right, sir. And sir, at these realizations, what is happening is that we are not making satisfactory margins or we are not making money. And this is in spite of lack of doc in the market at least over last 6 to 8 months which has led to lower production of both DOC and broiler birds. And even in that scenario, the industry leader like yourself is not able to make satisfactory numbers. So under what scenario will we make money?
P.G. Pedgaonkar
With regard to this question, we would like to analyze some past figures. We have seen that in past few years there is a consistent growth of poultry with regard to overall placement as well as production. At the same time the productivity of bird has reached to the extremely high level. So the earlier results which was evident on 40 days we were getting 2.2kg. Now at the age of 40 days we are getting 2.5 kilo. So there is increasing productivity which is contributing to the tune of 8 to 10% in addition to the normal growth of industry of 7 to 8%.
Because of which sometimes there is an additional production on account of extremely high productivity. At the same time we have some patches of consumption. So we have a Q2 and Q3 sometimes adding to the lower consumption. At the same time, production cannot be altered to a great extent matching to the consumption level. So when such things happen, definitely the hit is taken by realization. So these are some of the facts with regard to poultry. And we are witnessing the same in terms of when we are analyzing the results. As we rightly said that because of Pumbamela when we hit the consumption so production could not be altered to great extent because already the cycle is in place, the breeders are in harm.
So definitely the production cannot be kept on a suspended level at that point of time.
Viraj Mehta
Right? And sir, we saw anti dumping duty on oils in October November due to which the prices has gone up. But our profitability has only slightly improved. QoQ in oil segment. Shouldn’t we as a company should have seen much higher improvement in oil price oil profitability?
J. K. Handa
No, actually what has happened it has not been anti dumping duty. The government which was leaving the zero percent duty on edible oil, they increased the rate because the farmers for the local oil seeds were not getting remunerative prices. In fact, the MSP prices have gone below almost 20% below. Then the government declared MSP prices. So there was a desperate by the government and they started procurement of the seeds through NAFED. In fact you can say that almost 25% of the total crop is being holded by NAFED as on today. And another thing that happened so that is the first time in many years the soya oil prices have gone down below palm oil prices.
Because the soya imports had gone up and because biodiesel diversion in Indonesia the palm oil has not come down as expected. Now I think last one month the things have stabilized. Everything is stabilized. And we are seeing the difference in the first month itself. Now we hope even better things to happen in the coming days. Thank you.
Viraj Mehta
Right sir, I’ll come back in the queue. Thank you.
operator
Thank you. We’ll take our next question from the line of Keshav Garg from Countercyclic Investment. Please go ahead.
Keshav Garg
Sir, please tell us the per kg cost of maize and soya for Q4.
P.G. Pedgaonkar
The cost of maize for quarter 42425 was 24 rupees 50 paisa for maize and with regard to quarter 424 the maize price was 23 rupees 55.
Keshav Garg
Okay.
P.G. Pedgaonkar
With regard to soya, the soya price that I’m talking is a doc price 2425. Soya price was 31 rupees 20 paisa per kilogram for Q4 25. And for Q4 24 the soa price was 44 rupees 35 per kilogram.
Keshav Garg
Sir, and for full year if you could tell us ma price, soya pricer realization. Doc realization for full year FY25. Year on year.
P.G. Pedgaonkar
Sure. For FY25 the maize price was 25 rupees 50 paisa. Soya price for FY25 was 37 rupees 90 paisa. With regard to broiler realization it was ranging from 88 rupees to 91 rupees for 24. Full year maize price was 22 rupees 80 paisa. Soya price was 47 rupees 55 paisa. And broiler bird price was 87 rupees to 88 rupees per kilogram Doc Doc price cheap price for FY25 was 3854. And Doc price for FY24 was 30 rupees 75.
Keshav Garg
Sir, now our main hit has come. If we see the last few years more than poultry. The hit that we have seen is coming from the oilseed division wherein if we see then from a peak revenue of around 2 and a half 2,600 it has less than half to 1100. And similarly the EBITDA PBIT has fallen from 134 crore to 19 crore over the past three years which is the lowest since 2015, sir. So. And even though the poultry segment has bounced back somewhat over the past two years, the soya profitability has kept on falling. Now sir, this is I assume due to the ethanol blending from maize which produces a byproduct known as DDGS which is a substitute for doc basically de oiled cake from soya that we were selling to the feed industry. And since DDGS is far cheaper. So that is why the DOC prices have fallen. Now sir, since this trend is not going to reverse like ethanol blending from maize is expected to continue. So sir, then I mean what are the plans for our oil seed division? Because this is not a one off DDGs is here to stay.
J. K. Handa
Yes, you see regarding the profitability and turnover one thing that it has been substantially the rates have come down almost by 30 to 35% of the commodity itself. So a seed which has gone up to the 70 to 80 rupees at one point of time now it is around 42 to 45 rupees. So that value it has come down. Number two, what happened? This is a commodity business. Most of the profit comes because we are a cash rich company. So most of the profit comes from the speculative business. When we hold the inventory or when we buy the goods in the season and process it in the off season that the time it gives a lot of profit which because the prices have been very low last two years and there has been no reason to store the material.
Hence that segment has taken a hit. Number one. Number two, because the MSP price has been ruling almost 20% below the government intervention has been quite. You know at times which has been created by instability in the markets. Number one that soya DOC export prices have not gone up. Number two the they have imposed the oil duties. So the soy oil prices had come down first time in compared to the palm oil. Now these kind of all uncertainties our own now things have stabilized. People have to accept DDGS also and we have enough market for the soybean.
Also because soybean has gotten a better availability of a protein, better availability of our digestibility. Hence I think it will not be able to compete with the soya doc. Number one. Number two, as for the DDGS market is concerned see the though the government is trying to promote the this ethanol from the corn and they have given the special pricing of to the ethanol manufactured by from the corn. But this was considered when the crude oil prices was at around $80. Now the prices have come down around $60 and if you go the some of the experts opinion probably it may come down to $55 in that scenario the ethanol prices given by the government we have our own regions to see that can it be sustained in the longer run.
So that’s a very big question mark and as everybody is aware that crude oil has fallen down drastically and it is likely to go down further with the because of the OPEX decision. So DDGS has its got on limitation whereas the sway has got lot more potential. So we see that coming days are going to be good for this division. Thank you
Keshav Garg
sir. Now another big concern is that the tariff negotiation with us and if they are able to arm twist us to open our imports of chicken leg peas which is a waste product in US and we have already lost the case in wto. So so now if that starts coming the the landed price of which would be 6070 rupees kg and sir leg piece is very popular in India unlike us. So I mean what will happen to us?
P.G. Pedgaonkar
This is a hypothetical question because these are all with the probabilities what is going to happen and what will happen. So these, these are all hypothetical discussion. So with regard to current situation I think we are better wise unless and until in actual reality some picture comes in front of us. It’s very difficult to comment on this.
Keshav Garg
Sir, what was the volume growth in the broiler segment in the solar in the soya segment what was the volume growth? And for this year what is the expected volume growth in each of our three segments.
J. K. Handa
There has been a degrowth. Last year because we have undertaken continuous maintenance on the our plant the first half was not that good so there was a degrowth in the soybean. But this year we are expecting about 25% growth in the soya area.
Keshav Garg
Okay sir. And what about the broiler.
P.G. Pedgaonkar
With regard to poultry lot? Depends on realization. But considering the overall placement and volume we are expecting a growth of close to 5% to 10%. But still it depends on the realization. We are expecting better realization for FY26 and if that goes true then our expectation is close to 5% to 10% in overall growth.
Keshav Garg
Answer Animal health.
Deepak Khosla
Thank you. It’s Deepakhosla here for animal health. What we have seen very consistent performance over the years. And if you see the Q3 of the 2324 versus 2425 there’s a growth of around 20 21% in the value wise and the April Month also has been very good. So in HP segment we’ll see the very stable performance in the coming months.
Keshav Garg
Yes sir. Now if we see that our revenues are back to where they used to be in let’s say 2019. But our receivable that time was 300 crore and now it is 550 crore. Sir. So basically. And sir most of this receivable is due to the parent company. And parent company is debt free. Sir, if parent company was deeply in debt then it was understandable that the subsidiary is having to support the parent. But parent is debt free. And despite that they are just like taking six six, eight, eight month nine credit. Which doesn’t make any sense sir.
So by when can rollers expect something so because the promoters don’t even attend the agm. So then where do we go and where do we like get accountability?
J. K. Handa
Yes Mr. Girth. In regard to the association outstanding related to the group company as well as the external customers. There is a small increase in the customer to the outside outside external customer also due to the business salvation and all. But as far as the group association group outrunning is concerned that has come down to the level of 171 crore during this year. I mean 165 crore. Last year March 24th it was 665 crore which has come down to the level of 500 crores. So that means there is a. I mean inflow of 165 crore outstanding level which is further will reduce as we progress thereafter.
There are different reason, different business which are interlocated, interlinked. So. But there is a decline in the outstanding level even in the associate also. Because associate not only the one product is being sold. There are multiple products, multiple companies are being sold sold to the from the group company which are interlated. Thank you.
Keshav Garg
Thank you.
operator
Thank you. So we request you to rejoin the queue for follow up questions. The next question is from the line of Kiran who is from Tabletree Capital. Please go ahead.
Kiran
I said my questions are with respect to poultry only. First question sir. From a poverty perspective, what state account for 80% of revenue? I mean is it like Uttar Pradesh plus Punjab plus Haryana account for 80% or 70% of our revenue? Or is it Rajasthan, Uttar Pradesh, Punjab and Haryana? I mean if I can just understand because from what we have done our market research prices across states vary a lot. Both for the broiler and dual chicks. Maharashtra is very very different. And Madhya Pradesh is very very different than Uttar Pradesh. So it will really help all our shareholders to understand what states account for 70% of revenue.
I’m not looking for a statewide split, I’m just saying these three states or these four states account for 70 to 80% of revenue.
J. K. Handa
As far as that Venkis is concerned in regard to the poultry which is comprises of broiler chicks, layer chicks and redybirds. It is located from Jammu Kashmir to Bihar mainly and as well as Gujarat. If you add so all these states are having the operation of roller chicks, deole chicks, layer chicks, the old chicks as well as the Reddy birds. UP is having an upcoming market within productive production is less but there is a consumption. So we are placed in almost in every state. Very recently we started in the Jammu Kashmir where it was. We were not having the presence so we started.
Venkis has started the operation of birds ready birds Though we were there in the day old chicks of broiler. But we are trying to be placed in every state wherever so that we can get the margins average rate realization of all the state wherever our presence is there. So we are having the packed production of broiler chicks, layer chicks, redy bird in all the states starting from Jammu Kashmir, Haryana, Punjab, hp, Rajasthan and UP and Bihar also. So we are better placed in regard to the business. But if you say UP is a consumption center, may not be a productivity center, Haryana is a productivity center, may not be a consumption center.
So different parameters are there, different consumption levels are there to understand the requirement and. But our presence is at all places in terms of productivity, production as well as the marketing. Thank you.
Kiran
Just a follow up on that. Sorry. We have from a poultry division FY 2519, 27 crore, right? So let’s say 2000 crore roughly, right? 2000 crore revenue from poultry division. From our facilities for Venkis India in the poultry division 2000 crore. Now this 2000 crore is entirely consumption driven, right? Nothing to do with productivity. So my general simple question is out of this 2000 crore what can I attribute or what state, what 3, 4 states can I attribute 1500 crore revenue.
Deepak Khosla
To. See our presence is in North India and West India roughly if you want to break this Turnover, close to 65 to 70% turnover comes from Northern India and balance 30 to 35% turnover comes from western India. So this is a rough bifurcation of the total turnover.
Kiran
When you say northern India, sir, Rajasthan, Punjab, Haryana is are those the three major states and Uttar Pradesh consumption is lower. So I’ll not consider that. Is that a fair assumption?
Deepak Khosla
Uttar Pradesh also from our point of view we are considering as an Open India operation.
Kiran
Okay. Okay. So that was first question. So second question sir then is from a doc perspective and a broiler perspective. Again this is market research on at the end retailer or different market players who are providing market research services as well. They say look, broiler prices are about 105 to 110 as of today. Sir, it’s changing every day. 105 to 110. And DOC prices are anywhere between 38 to 40. Last month they were about 45. DOC price was at 45, right. Today it is at 38 to 40. So when it is 45, sir. So April you mentioned that you know, April we had about 38 rupees of realization for doc.
Let’s just talk about doc only. So April we said it is 38. The prices based on you know retail price were about 45. So that’s a seven rupee differential. Is that a fair assumption? Like for today it is 30 rupees of the realization for Venkis will be 31 rupees. Is that a fair rough calculation?
Deepak Khosla
When we talk of realization, we actual realization. When you are seeing any rate, those are the declared prices. And the declared prices declared on a different forum can be different. So when we talk of venkies, this is the actual realization at the end of month. So we are talking on a realization basis. Because realization consists of lot of things. And finally whatever has been realized that is the actual realization. So 38 rupees for the month of April was actual realization. Though the declared price might be 40 rupees to 42 rupees at a different platform.
Kiran
Got it. So just that clarity, sir. So today I know it’s not for month of May. But just today let’s say it is 38 rupees. As a some website publishes 38 rupees then our realization might be 32 or 33 rupees or whatever it is lesser than 38. Is that a fair assumption?
Deepak Khosla
Right. Right. Right. Absolutely.
Kiran
Okay. Okay. Got it, sir. Thank you so much.
operator
Thank you. The next question is from the line of Harsh Shah from Medicis Advisors. Please go ahead.
Harsh Shah
Yeah. Can you hear me?
Deepak Khosla
Yes.
Harsh Shah
Sir. I see a sudden jump in the other expenses. So can you explain was it what is the reason behind it?
Deepak Khosla
Yes, the other expenses. Other miscellaneous expenditure in this year 2425 is the 18.90 crore which was against previous year it was 17.58 crore. So hardly there is an increase. It is 7% increase over the previous year. Now 18.90 crore which is then the other miscellaneous expenditure Is mainly on account of the go down expenses for feed. We are having the contract broiler business division wherein almost 28 branches are located. With each branch we need to have a go down space for the storage of feed. So that feed can be distributed to the birds and all.
And similarly the other expenditure is also included. There’s a list of expenditure which is included there in 18.90 crore. The same was in the previous year also. There is not a major change or major increase thereof.
Harsh Shah
Okay. Because other expenses are indigoing. That’s why I. It just came to my mind. Okay. Okay. Fair point. Thank you.
operator
Thank you. We will take our next question from the line of Nayan Agrawal who is from Agility advisors. Please go ahead.
Nayan Agarwal
Hello. Am I audible?
J. K. Handa
Yes
Nayan Agarwal
sir. So I wanted to know that even though the tat has been increasing for the past three years there has been a phase the growth for around 1000 crores. So what could be the reason for that?
J. K. Handa
There is no reduction in the turnover to the extent of 1000 crore. There is a reduction of turnover to the extent of 400 crore. In few segments we have increased the turnover to the extent of 171 crore on yearly basis. Where in one segment it was 600 crore less. So overall there is a reduction of 400 to 450 crore turnover over the last year. There’s no 1,000 crore reduction in anyway.
Nayan Agarwal
Okay. And the next question would be. So like as we in the the broiler segment. So you have said that the broiler has been formed after eight years of R D. So even after the specialized broiler and as you said that the feed conversion ratio is reducing. So why has the revenues in poultry segment still flat? And why has he not gained any market share in poultry segments?
J. K. Handa
Just a moment. There is a steady increase in overall revenue of poultry. If you talk of poultry segment for 24 we have reported 1755 cr of poultry turnover. As long as this year year we are reporting 1927 crore of poultry turnover. So all put together there is definitely an increase in overall turnover poultry. As I said in my previous answer that lot depends on the realization. Because when we are comparing I mean the overall turnover realization impacts a lot for adding or reducing the turnover. Last year overall realization was to the extent of more or less same with regard to what it was in FY24.
But though the realization was flat but still the turbo has increased to 10%. That indicates that there is overall growth in poultry segment.
Nayan Agarwal
Okay, and the last question would be. Would be from the HP segment as you said that the new CapEx was active from December 24 and the guidance. You gave for revenues was approximately 20%. That was 62 crores on that current revenue. So the CapEx revenue ratio will still be 1 to 1, 1 to 1 or will it increase in FY22?
Deepak Khosla
Yeah in HP segment we have made some investment in the last financial and I told you the product started the production from April, May onward of the last financial year. The result of the product production and the new information what we have introduced have seen the effect from the September onwards and generally to March the last quarter of 2425 and 2334 is a remarked improvement has been seen. Yes. I think related to capex Mr. Hunter can answer if anything no the.
J. K. Handa
Capital expenditure is incurred but in this year if you see the AHP segment the turnover is 339 crore against the previous turnover of 310 crore. So there is a growth of turnover to the extent of 9% over the last year which is a reasonable number because it is not a full year’s number it is a part of the year’s number.
Nayan Agarwal
Okay, thank you.
operator
Thank you. The next question is from the line of Amit Agicha from HG Hawa. Please go ahead.
Amit Agicha
Good afternoon sir. Am I audible?
Deepak Khosla
Yeah you are audible.
Amit Agicha
Thank you for the opportunity sir. So my question is with respect to the strategic initiative of apex of 70 crore toward SPF egg expansion like how much of the current SPF capacity is utilized and what is the expected ROI and payback for this project.
Deepak Khosla
So as far as SPF capacity is concerned we have a large capacity to the extent of 188 lakh bird placement capacity. But since it is a livestock business and bio related many issues are there. We are utilizing to the extent of 60 65% productivity out of that and the same production is being sold. There are lot of chances and lot of scope for the export business also and this year the export business is almost more than double. Last year it was 7 crore something. This year it is almost 20 crore. Export business is also there and there are a lot of inquiries.
So when we start the expansion in the SPF business it takes almost two years to come back to the production. If we start today it will take two years time. So there is a long term goal and the capacity also enhanced to the level. So that’s why the I mean expansion is there going on to be there for 70 crore which will take almost a year’s time to complete.
Amit Agicha
Are you supplying 20 vaccine manufacturers.
Deepak Khosla
Yes, yes, yes. Our product is mainly to be supplied to the vaccine manufacturer for human as well as the poultry.
Amit Agicha
And sir, could you. Would you be able to give any like potential for ready to cook spices that you’re venturing into? Any estimated. Any potential?
Deepak Khosla
Yeah, there is a good potential for ready to eat chicken products and we are already supplying to the retail then we are supplying to the various institutions and E commerce. In addition to that we are also supplying to various quick service restaurant chains.
Deepak Khosla
Sir, your question is regarding to ready. To eat chicken or ready to cook? Spices.
Amit Agicha
Spices.
Deepak Khosla
Spices. Oh I’m so sorry. The spices. Now we will be starting a production shortly which will be in the next quarter and we have prepared these products with the understanding that all the product, these spices will require a minimum intervention at a cooking level and you need to only add certain oil, some amount of oil and some. Some certain amount of water for cooking the products and it will be that spices will have all the ingredients which is normally required and these will be all Indian, mostly authentic Indian taste. So we feel that there is good scope for local market as well as export for these products.
Amit Agicha
Would it be possible for you to. Be any estimated revenue potential for at least FY26 where you are going to start?
Deepak Khosla
Just a minute. Right now it is very difficult to assess because we will be looking for the export market as in the initial stage but once the production starts we can definitely confirm in after one or two quarters once the production starts.
Amit Agicha
Thank you sir. All the best for the future.
Deepak Khosla
Thank you.
operator
Thank you. The next question is from the line of Pranaya Khandelwal from Alpha Invesco. Please go ahead.
Pranay Khandelwal
Yeah. Hi. Thanks for the opportunity. Congratulations on a good set of numbers. This year has been a lot better than the last one. I guess I wanted to understand this SDF egg expansion as the previous participant also asked this question so I’ll refrain from repeating that but you mentioned 180 of lakh board placement capacity that is before the expense expansion, right? Like current capacity is that much?
Deepak Khosla
Yes. It is true that the total annual capacity for all the plant is 188 lakh eggs production. I am taking the egg production, it is different. Is the egg production 188lakhs? Yes.
Pranay Khandelwal
And with the 70 crores expansion that you have that we have planned how much will we be adding on to that?
Deepak Khosla
There are almost which we have planned is the total six houses which are going to build up for the placement of birds which will be likely to be somewhere around 40,000 birds annually.
Pranay Khandelwal
Okay. And they’ll produce close to 100, 200 eggs per year. Or how does it work?
Deepak Khosla
It is more. It is. It will be more if all the flocks are fully placed with the birds. If the birds are not placed due to biosecurity level, sometimes shed ready is also necessary. The many biosecurity reasons are there, but the potential is there with us. We can take out the production if the demand comes and all.
Pranay Khandelwal
Okay, alright. And for the birds, so the chicks we procure from our group company itself or do we have to go outside to procure these chicks?
J. K. Handa
No, for SPF line it’s not the bird which you are procuring from in house. It is a basic grandparent is a. Special line and usually it’s a research product. And I mean whenever we are talking of any research product we have some in house research also. And that produces and the chicks. And those chicks are placed as a SPF birds.
Pranay Khandelwal
Okay. But that is taken up in the group companies, not the listed entity. Okay. All right. Yeah, I think that’ll be all. Thank you.
operator
Thank you. The next question is from the line of Akhil Parekh from BNK Securities. Please go ahead.
Akhil Parekh
Thanks for the opportunity. I have three questions. One is if I look at the poultry and poultry product segment, our EBIT for the year has been 100 crore. While if I look at last five, six years trend say FY17, 18, 19 and 21, we were somewhere around 180 to 280 crore of a bit. What realization in broiler and doc we need to cross that 200 crore a bit. And maybe probably what kind of RMS in terms of per kg, what needs to be there basically to reach that code in the process? That’s my first question.
Deepak Khosla
Yeah. With regard to the profitability pertaining to poultry division, lot depends on the ingredient price. If you recollect the profitability of the particular year which you quoted, if you go back to that particular year, you will find that the overall ingredient prices for the particular year was exceptionally low. And that has contributed a lot to the profitability. And from last three, four years there was definitely a crunch on the commodity segment. And with regard to particularly soya and maize, because of lot of geopolitical as well as domestic equation, the prices of maize has strengthened a lot.
So nowhere the price of maize has come down below 23 rupees which earlier was quite same was the case with soya. Fortunately last year was good for soya. This year with regard to April also the soya prices reported subdued. And I Mean quite comfortable if that continues. I mean you never know that that kind of performance can be repeated. But lot depends on the ingredient price.
Akhil Parekh
Okay, so my second question is the same like would you be able to guide like what kind of trend is expected for soya and Maestra for FY56.
Deepak Khosla
OAI is going to be stable now. The prices have come down drastically almost by 25 to 30%. We expect that next coming years it will be stable prices and may it lot depends on the ethanol policy and which you are likely to see that in next couple of months the crude oil prices will be coming down and that major impact on the corn prices and that you have to see. But the ethanol can have a lot of impact on the pricing of a corn. Thank you.
Akhil Parekh
Okay, and my third and last question, the oil fee segment I think is one of the questions, one of the answers you guys highlighted. April is great. April was good. And if I look at the EBIT number right again for this segment has been close to bottom. So is it fair to say we are at the bottom of the cycle in the oil seed segment and the EBIT numbers what we saw probably say, say if not 22 but maybe say FY20, FY21 like 60, 70 crore of EBIT level is is possible in this year or what could, what could restrict the profitability in the oilfeed segment for this year? Yeah, that’s all from this?
Deepak Khosla
Yes. Now the beginning has been good because the more or less the soya market is stabilized now you see this is the commodity market. The profit comes from the two segments. One is the normal conversion charges from soybean. That margin is very low and major profit stock valuations. When you buy the material in advance and then process at a later stage, you are able to take the advantage of the market. So that profit is significant in the commodity market. Right now we do not see that kind of a situation happening because prices are more or less stable and we do not see any kind of speculation happening at this place if unless until some natural thing happens.
So we can expect a good profitability definitely. But not the highest what we had achieved in the past. But profitability has been improving and this is the bottom you can expect what has been this year.
Akhil Parekh
Okay, great. So that’s all from my side and wishing, wishing.
operator
Thank you. We will take our next question from the line of Madhur Rathi from Countercyclic Investments. Please go ahead.
Madhur Rathi
Hi. So thank you for the opportunity, sir. If I look at our poultry segment versus our competitor IB EBS exports so they have grown the revenue at 20% YoY from 2020 to 2025. So. So. And they sold their chick from EV agent. So is this the. Is there an issue where aviation has become more aggressive in placing their checks in the market? That’s why we are losing our share to our competitors.
Deepak Khosla
Yeah. With regard to poultry and comparison with our competitor there are two basic prominent differences. One. One is that when you are talking of Vinkies India Limited it is having operation pertaining to two zones that is west zone and north zone. With regard to the comparison what you did, they are having a presence all over India. Secondly, when you are talking of Vinkys you can see the portfolio of Vinkys Venkies portfolio is completely well balanced. So we are not growing alone in a poultry. Because we have total three to four segments in Venkis out of which one is a poultry.
And if you see the breakup of poultry vis a vis other segments of Venkis India Ltd. Poultry contributes close to 45% to 50%. So when you are talking of Venkis we are talking of only 45 to 50% rest. 55 to 50% comes from other divisions that is soya as well as AHP. So we believe in balancing of the portfolio. And Venki’s portfolio is balanced. Whereas the company which you are comparing they are exclusively into poultry. I hope I have answered your question
Madhur Rathi
right sir. But if I. If I remove the geographical factor. So sir, their revenue has grown up by 2h more than 2s in the 5 year period. But our revenue has grown from 1500 crores in 2020-19. 2000 crores in 2025. At a much lower growth rate than what the competitor has done. So overall if I consider the chick placement that Venkies India has versus our competitor sir, have we. Has our parent company lost market share? That’s why we are facing a slower growth volume growth than what our competitors are. Different in the statement
Deepak Khosla
as far as. Overall placement is concerned. When we talk of a breeder placement all over India basis, all over India basis breeder placement of Vancouver vis competitor that comes to 80 to 85% is of Vancouver and close to 15 to 20% is of competitor of which IV is one of the competitors and they are placing it all over India. Whereas as far as Venkage is concerned, as you rightly said that we are in high having placement only in two regions I.e. west zone and Northern India. But if you are talking of overall growth poultry is growing to the tune of 8% to 10% and we are matching that pace as far as overall growth of poultry is concerned overall put together.
Madhur Rathi
Okay, got it sir. In our animal health segment, sir, what would be the optimum revenue potential for this segment? And sir, can we expect this 20 boson growth to continue for the next three, four years?
Deepak Khosla
Yeah, actually what happens is we have seen the last quarter of 2425 which I mentioned as compared to 2324 the last quarter in the same direction. And April has been very good. We are very optimistic on animal health performance in the coming year. With the new plant is now fully commissioned and the capacity definitely has improved and all the regulators, clearances, compliances has been there. It’ll be very consistent and very respectable growth in the coming years, I can assure you. Thank you.
Madhur Rathi
Potential of this capacity and capacity utilization currently.
Deepak Khosla
Yeah, yeah, definitely one happens in the new facility. What we have made it is now at the around 55 to 60% levels of the capacity utilization. And we have started expanding exploring some new product line from that division. This will definitely add to the volumes.
Madhur Rathi
Yes, please sir, just a final question sir. Are there with the. I think we commissioned one solid plant and one liquid plant. So is there any possibility of margin improvement in this segment going forward?
Deepak Khosla
Yes, definitely. Because the first year it was a commissioning of the plant. Definitely margin will be very stable and very positive. Yes. Okay.
Madhur Rathi
Thank you sir and all the best.
Deepak Khosla
Thank you.
operator
Thank you. We will take our next question from the line of Vanit Singh from Countercyclic pms. Please go ahead.
Vanit Singh
Hi sir, my questions have been answered but I would like to understand we saw significant, significant fall in margins in the spirit specifically in the poultry segment in Q4 from about EBITDA from about 38cr to about 4cr. So I mean I would like to understand the impact of cumb in this. So I mean can you quantify what kind of. Can you quantify how much fall in EBITDA can be directly attributed to lower consumption due to comb in Q4?
Deepak Khosla
So during the KUMBH period it was having the effect on almost all the segment in the different states. Though the KUMBH was there in the UP only. But transportation logistics, movement of goods, movement of raw materials, movement of finished product has affected a lot Due to that lot of realization has got affected particularly in February and March that has impacted affected the last quarter. Otherwise there is no reason because the numbers were having a pack we were having the production the day old chicks, broiler chicks, day old chicks as well as the birds. But due to the prices Were not behaving well the way it was.
I mean expected due to all these numbers, all these reasons maybe of transportation movement freely movement of goods. So all those things are affected ultimately which has. I mean after Kumbh those things are improved. Though the one or two weeks was sluggish because the material was jammed kind of thing. But now April is also a very positive month. Even the current period is also a positive month which due to the comb those things are already over. Thank you.
Vanit Singh
So I mean our EBITDA fell from about in Polti segment 38cr to about 4cr. So I mean had there been no More a normal Q4, I mean if we put aside the effects of cum would we be seeing about similar betas as last year in the Pulte segment?
Deepak Khosla
To some extent, yes. I mean it’s very difficult to comment whether it would have compensated that 34 of the last previous quarter or not. But definitely it would have been added what it is.
Vanit Singh
All right, sir. Got it. Thank you.
operator
Thank you. The next question is from the line of Ankit Gara who is an investor. Please go ahead.
Ankit Gara
Thanks for the opportunity. First of all I would like the revenue breakup for the poultry segment for FY25. And comparative figures for FY24 for grown up boilers, the whole chicks and processed chicken.
Deepak Khosla
As far as the volume is concerned, in the poultry segment we were having the broiler day old chicks it is sold 10.77 crore. Against corresponding period of 2324 it was 10.78 crore chicks day old chicks. Similarly the layer chicks day old chicks it is sold 4.38 crore in 2425. And in the last last year it is 4.32 crore in 2324. And same way the broiler birds it was 9.17 crore kg in 2425. Whereas in the previous year it was 8.83 crores. And similarly for the SPF hacks it was 91 lakh in this year as well as the 91 lakh in the previous year.
So brawler hatching egg, it was 9 lakh sold in this year. Whereas 23 lakhs was sold in the previous previous year. Layer hatchings, it was sold 29 lakh this year. Whereas the last year it was 32 lakh eggs were sold. So these are the poultry numbers. Volume based last year versus this year.
Ankit Gara
And I just wanted to ask like that. Ready to eat it ready to cook. Revenues are included in the processed chicken revenue. So like it’s different.
Deepak Khosla
Yes, yes, yes. It is included in the poultry and poultry segments.
Ankit Gara
So could you just quantify those numbers for me?
Deepak Khosla
For ready to eat segment for processed Chicken it is 110.27 lakh kgs in the this year 2425 whereas it was last year it was 61.37 lakh kg in 2324. But there is a product mix difference is the live bird sales in this year. Whereas other than this product mix is different in the earlier year.
Ankit Gara
And the revenue for the same for process chicken.
Deepak Khosla
That will be published in the balance sheet. We don’t have the numbers now so.
Ankit Gara
I just wanted to ask the ready to eat and ready to cook segment we had some marketing spend budget that was going to increase for the last 2/4 of Q3 and Q4. Could you just quantify the number and for this year what’s the guidance for the marketing spend?
Deepak Khosla
We don’t have the numbers now. You can email us, we’ll provide that.
Ankit Gara
And I just wanted to know a marketing strategy for the ready to eat and ready to cook segment. Because right now since the last two quarters we have been aggressive in the quick commerce and e commerce. Any growth in percentage terms you can quantify and like how aggressive are we in that segment and what numbers do we wish to have in the next three to five years?
Deepak Khosla
Actually in process food division we have three success sectors that we where we market. One sector is supplied to the quick service restaurant chains and this quick service restaurant chain supply is increasing on a regular basis. So that is one sector which we are supplying. Another sector is retail market. What we were marketing in a modern trade or regional modern trade or general trade. But last two years there is an emerging trend that E commerce is increased substantially and there is lot of close down of certain modern trade chains. And with that and post Covid also we experienced that that lot of consumers are looking for the e commerce chain for the supply of the products.
So definitely we had concentrated our efforts for marketing our products to E commerce sector and that sector is now improving on a regular basis. We expect the increase in our sales for the for this sector to more than 25 to 30% in next year compared to this year.
Ankit Gara
Okay, 25 30% of ready to eat and ready to cook for the retail segment. Right. And as a brand because
Deepak Khosla
retailer this. Includes retail segment also for the big service restaurants in both the sectors. But yes it will be the growth. Will be this much
Ankit Gara
and the current pie in the total revenue would be for these two segments.
Deepak Khosla
We will percentage tell me again the.
Ankit Gara
Current percentage for the total revenue of poultry segment would be for these two segments. Any. Any particular number not accurate. Just approximate number will be fine.
Deepak Khosla
5 to 10%. Yeah. Without 10%.
Ankit Gara
10% for the total poultry segment. Right. So.
Deepak Khosla
Hello.
Ankit Gara
Yeah, so I just wanted to. Yeah, I just wanted to add on further. So if we have like 10% or revenues from these two segments in the fruit of poultry and considering the AHP business which is contributing to around 10% of revenue. These two are the only businesses in our portfolio which we have certain power of pricing power. So I just wanted to get a feedback from the company. Like how aggressive are we in these segments so that these segments can grow in the total revenue share. So that our margins remain consistent and not fluctuate like and do not are not on basis of the commodity prices or the average realization price of the birds.
So how are we looking at that?
Deepak Khosla
Yeah, as in the few minutes before Dr. Peragonkar has mentioned the Venkis is very well balanced plays with different portfolios. Portfolios of poultry products including processing in SPF Dio chicks. Then you have oil seed division. Then the animal health business. Animal health business has been very consistent because the animal health product line is little bit not much get those kind of shocks of the behavior of the poultry commodity markets. So it’s very consistent and with the expansion which is definitely a direction towards the growth in this segment in the future. And definitely this segment will become more and more significant into the contribution to the Venki top line.
That’s what we see now. And it’s already some new product innovation, some new introduction has been done and we have already started exporting to some other countries. So this is going into the same direction. It’s very consistent, very stable and very futuristic. Thank you.
Ankit Gara
And just a last bit of follow up for this. Like could you just guide for the segment for the FY26. I couldn’t get the numbers previously so I just. For these QSR and retail. Not the AHP business. Sorry, QSR and retail. You said 25 to 30%. What’s the AHP business guidance for this year?
Deepak Khosla
Yeah, we are at around 340 crores this financial year. 24 when we close 24, 25. We are looking forward for the top line growth of 15% for the 25. 26
Ankit Gara
for HP.
Deepak Khosla
Yeah, yeah.
Ankit Gara
Thanks a lot. Thanks for the question. Thank you.
Deepak Khosla
Thank you.
operator
Thank you. The next question is from the line of Vijay Gupta who is an investor. Please go ahead.
Vijay Gupta
Good afternoon sir. My first question is on the land holding of the Company. Can you throw some highlight on that? The total land owned by the company maybe as at the end of FY25.
J. K. Handa
Yeah. We’ll get back to you sir. On this question we. Because this land is scattered at various locations. So we’ll have to do an exercise for this to have a perfect number. We’ll get back to you.
Vijay Gupta
Okay sir. My previous participants have also asked this question just reiterating the same. If you can just throw some numbers around this. Do current production capacity of SPFX is 188lakhx? Have I got that correct?
J. K. Handa
Yes. Yes.
Vijay Gupta
How many. How many bird placement do you believe were required for this? 188lakh x. Any rough idea? Because the expanded capacity is for 40,000 bird placements.
J. K. Handa
Yes, that. That is a capacity which has. Which is under construction or under. But 188 lakh number which I given as a capacity. But that. That is a. I mean installed capacity kind of thing. It all depends on the. I mean placement of birds depending on the bio, biosecurity, reason or other requirement of the market as well as so all those things. And you’ll have to give the shed rest also between two months to three months between the flocks. So those are many decisions which are related to this business. As we get the good orders we may extend those things.
Otherwise the shed rate may be continued for two two months to even four months also so that the bias level be good for the productivity and all.
Vijay Gupta
While I understand this logic, my only that is the reason I stated in the beginning. We can get some numbers to this188 leg at production would have a corresponding bird placement number. A rough number correct and a 40,000 extension as I’ve been achieved would give a rough idea of what the total egg production could be. And hence either the number on 188 lakh egg production but placement is good enough for us to calculate or what is the expected egg production capacity out of the 40,000 bug placement. Either of these two numbers would be good enough if you can just throw numbers on this.
J. K. Handa
Yeah. As we recently have stated that lot of factor depends because these are strict quality norms product. When we are talking of strict specific pathogen free egg. This is not the kind of commodity egg where in normal commodity egg per bird we are getting 300 to 330 eggs. That is a normal commodity or a table egg which we are getting. But when we are talking of eggs there are lot of parameters which are strictly check on a quality basis. So this ranges from 100 eggs to 150 to 200 eggs depending on the quality parameters per word.
So when he has mentioned you that he is getting 188 lakh. I mean this number cannot be exactly the same pertaining or relating to the total number of the birds. So it depends on a lot of quality parameters. Those quality matter parameters are being passed then only that number can be correlated. But to answer your question, it can be 120 to 280 eggs per bird. It can be any number out of this. Because it is very difficult to estimate right now. Because lot of quality parameters besides selection or rejection of egg. So selection of rejection of eggs.
Whatever the number he has stated 188 lakh. That is a completely selected number which might be from X number of the birds or Y number of the birds.
Vijay Gupta
Okay then my next question is the current cost of production for broiler and chicks and do we see any gains there out of as compared to the average cost of production for FY25 or do we see an increase there?
Deepak Khosla
As we have stated that the prices of soya is constant for FY24 and FY25. However the prices of maize has increased by 10% compared to 24 in FY25. So there is an increase in maize price. However, the soya price is constant with regard to production cost of broiler hatching eggs. In addition to this there are two three factors which are. One is overheads and others are compulsory. I mean which are like electricity and other charges that has been increased. So there is a marginal increase in overall product production cost of hatching eggs. However, there is no much increase in cost of production of hatching eggs on account of ingredient prices.
Vijay Gupta
And we expect the same trend to continue in by 26 as well.
Deepak Khosla
Yes, because the outlook for commodity with regard to soya as mentioned by Toshnival Sahib is the constant. However, maize is uncertain. If we consider that maize the same price continues then outlook for broiler hatching it production cost will remain the same.
Vijay Gupta
Thank you, sir.
operator
So, thank you. We’ll take our next question from the line of Viraj Mehta from Enigma Investments. Please go ahead.
Viraj Mehta
No, no. My question has been answered. Thank you.
operator
Thank you. Ladies and gentlemen, in the interest of time we will take this as our last question. I would now like to hand the conference over to the management for closing comments.
Deepak Khosla
Thank you all for participating in this call. In case any queries have remained unanswered, please feel free to send us an email and we will respond accordingly. Thank you. I think we can conclude the call.
operator
Thank you on behalf of ICICI Security securities limited that concludes this conference. Thank you for joining us. And you may now disconnect your lines.