{"id":156449,"date":"2023-11-20T06:04:50","date_gmt":"2023-11-20T11:04:50","guid":{"rendered":"https:\/\/44.250.171.167\/?p=156449"},"modified":"2023-11-20T06:04:52","modified_gmt":"2023-11-20T11:04:52","slug":"avanti-feeds-ltd-q2-fy24-earnings-conference-call-insights","status":"publish","type":"post","link":"https:\/\/alphastreet.com\/india\/avanti-feeds-ltd-q2-fy24-earnings-conference-call-insights\/","title":{"rendered":"Avanti Feeds Ltd Q2 FY24 Earnings Conference Call Insights"},"content":{"rendered":"<p><strong>Key highlights from Avanti Feeds Ltd (AVANTIFEED) Q2 FY24 Earnings Concall<\/strong><\/p>\n<ul>\n<li><strong>Raw Material Cost Trends<\/strong>\n<ul>\n<li>Fish meal prices are high due to export demand.<\/li>\n<li>Soybean meal prices have fluctuated but remain around 54 Rs\/kg.<\/li>\n<li>Wheat flour prices increased from 29 to 33 Rs\/kg.<\/li>\n<li>Overall raw material costs increased 1% compared to previous quarter but decreased 2.5% compared to same quarter last year.<\/li>\n<li>Raw material prices fluctuate based on seasonality, production, and global trends.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Production and Sales Trends<\/strong>\n<ul>\n<li>Feed sales volume decreased 30% quarter-over-quarter due to seasonal changes.<\/li>\n<li>Feed sales increased 2% in first half of current year compared to previous year.<\/li>\n<li>Export shrimp sales volume decreased 5% in first half of current year.<\/li>\n<li>Company maintained feed production and sales despite 15% decrease in overall Indian feed consumption.<\/li>\n<li>Company&#8217;s export shrimp sales decreased slightly compared to 2.34% decrease in overall country&#8217;s shrimp exports.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Government Incentive Schemes<\/strong>\n<ul>\n<li>Company qualified for Production Linked Incentive scheme, eligible for up to 79.44 crore incentive over 7 years.<\/li>\n<li>Received 6.84 crore incentive in FY22 under this scheme.<\/li>\n<li>Also received grant under Operation Greens scheme for new shrimp plant.<\/li>\n<li>Submitted documents for first installment of grant.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Industry Growth Forecasts<\/strong>\n<ul>\n<li>Global shrimp production forecasted to increase 4.8% in 2024 after slight 0.4% decline in 2023.<\/li>\n<li>Early signs of recovery in U.S. shrimp import market after over a year of declines.<\/li>\n<li>India remains top shrimp exporter to U.S. but at lower prices.<\/li>\n<li>Recent increase in India&#8217;s palm shrimp exports of 17% year-over-year.<\/li>\n<li>Trends indicate potential increase in shrimp exports going forward.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Shrimp Feed Sales Outlook<\/strong>\n<ul>\n<li>Shrimp feed sales increased marginally in first half of FY2024 vs previous year.<\/li>\n<li>Field reports indicate similar shrimp feed sales likely in calendar year 2024 vs 2023.<\/li>\n<li>Despite 10-15% forecasted decline in total Indian shrimp feed market.<\/li>\n<li>Rest of current year appears optimistic for shrimp industry.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Diversification<\/strong>\n<ul>\n<li>Subsidiary incorporated to manufacture pet food and products.<\/li>\n<li>Partnering with Thai company for technical expertise.<\/li>\n<li>Company to invest 51% equity, Thai company and others remaining.<\/li>\n<li>Market research commissioned to evaluate demand.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Expansion Plans<\/strong>\n<ul>\n<li>Adding 7,000 tonne shrimp processing capacity by end of FY2024.<\/li>\n<li>Focusing on maximizing value-added shrimp products.<\/li>\n<li>Expects higher sales volume from new capacity.<\/li>\n<li>Also diversifying into pet food manufacturing, to commence end of CY2024.<\/li>\n<li>Expects pet food sales to start in Jan 2025.<\/li>\n<li>Anticipates higher revenues from processing expansion and pet food in FY2025.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Exports to US Market<\/strong>\n<ul>\n<li>Recent increase due to seasonal demand around holidays and not related to issues in other exporting countries.<\/li>\n<li>However, high Indian fishmeal exports concerning, impacting availability and inflation for processors.<\/li>\n<li>Representations made to government for export regulations.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Ecuador Competitiveness<\/strong>\n<ul>\n<li>Ecuador&#8217;s farmgate shrimp prices lower than India due to vertical integration of processors who are also large farmers.<\/li>\n<li>Ecuador focused on commodity products like headless shell-on.<\/li>\n<li>India competitive on value-added products like breaded shrimp.<\/li>\n<li>But Ecuador expanding production rapidly, now largest global producer.<\/li>\n<li>On basic processed shrimp, costs comparable between countries.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Protein Inflation Impact<\/strong>\n<ul>\n<li>Beef and pork prices rising in US and China respectively.<\/li>\n<li>Many other factors affect shrimp demand like disposable income.<\/li>\n<li>No observable change in shrimp demand forecasts yet.<\/li>\n<li>Hard to attribute any shifts solely to other protein prices.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Seasonality and Inventory<\/strong>\n<ul>\n<li>Shrimp business sees seasonal sales fluctuations.<\/li>\n<li>End of year sees seasonal uptick in demand.<\/li>\n<li>Single digit inventory days maintained through seasons.<\/li>\n<li>No issues liquidating inventory.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Key highlights from Avanti Feeds Ltd (AVANTIFEED) Q2 FY24 Earnings Concall Raw Material Cost Trends Fish meal prices are high due to export demand. Soybean meal prices have fluctuated but remain around 54 Rs\/kg. Wheat flour prices increased from 29 to 33 Rs\/kg. Overall raw material costs increased 1% compared to previous quarter but decreased [&hellip;]<\/p>\n","protected":false},"author":1767,"featured_media":154818,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[9825,12],"tags":[10169,8982],"class_list":["post-156449","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-earnings-call-highlights","category-other-industries","tag-earnings","tag-food-processing"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg","jetpack_likes_enabled":false,"jetpack-related-posts":[{"id":142595,"url":"https:\/\/alphastreet.com\/india\/earnings-avanti-feeds-ltd-nseavantifeed-q3fy23-results-out-total-income-rise-4-yoy\/","url_meta":{"origin":156449,"position":0},"title":"Earnings | Avanti Feeds Ltd (NSE:AVANTIFEED): Q3FY23 Results Out; Total Income rise 4% YoY","author":"Divyansh_Kasana","date":"February 23, 2023","format":false,"excerpt":"Avanti Feeds Ltd (NSE:AVANTIFEED) is a leading Indian company engaged in the production and export of aquaculture products. 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Ramachandra Rao -- Joint Managing Director Alluri Nikhilesh -- Executive Director Analysts: Sherwin Fernandes -- K-FIN Technologies -- Analyst Depesh Kashyap -- Equirus Capital -- Analyst Nitin\u2026","rel":"","context":"In &quot;Earnings Call Transcripts&quot;","block_context":{"text":"Earnings Call Transcripts","link":"https:\/\/alphastreet.com\/india\/category\/transcripts\/"},"img":{"alt_text":"stock earnings conference call transcript","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2020\/02\/EarningsTranscript.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2020\/02\/EarningsTranscript.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2020\/02\/EarningsTranscript.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":127817,"url":"https:\/\/alphastreet.com\/india\/avanti-feeds-ltd-q3-fy22-earnings-conference-call-insights\/","url_meta":{"origin":156449,"position":3},"title":"Avanti Feeds Ltd Q3 FY22 Earnings Conference Call Insights","author":"Praveen","date":"February 23, 2022","format":false,"excerpt":"https:\/\/www.youtube.com\/watch?v=PqLWbFGvF0Y Key highlights from Avanti Feeds Ltd (AVANTIFEED) Q3 FY22 Earnings Concall Management Update: As the demand for shrimp feed is expected to increase, the company is in the process of expanding the shrimp feed capacity by setting up a new plant with an annual installed capacity of 1,75,000 metric\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":181507,"url":"https:\/\/alphastreet.com\/india\/avanti-feeds-ltd-avantifeed-q3-2026-earnings-call-transcript\/","url_meta":{"origin":156449,"position":4},"title":"Avanti Feeds Ltd (AVANTIFEED) Q3 2026 Earnings Call Transcript","author":"News desk","date":"March 3, 2026","format":false,"excerpt":"Avanti Feeds Ltd (NSE: AVANTIFEED) Q3 2026 Earnings Call dated Mar. 03, 2026 Corporate Participants: Karthikayan \u2014 Moderator C. 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