3 stocks freeze in 20% upper circuit on strong June quarter results | News on Markets

Raw material cost was down 33 per cent year-on-year (Y-o-Y) and 24 per cent quarter-on-quarter (Q-o-Q) at Rs 480.41 crore.

The company said profit margins of the poultry and poultry products segment for Q1FY25 were better due to improved realisations from sale of day old chicks and grown up birds. Oilseed segment’s margins, however,  were affected on account of lower sales and lower raw material prices and also due to subdued realisations from the finished goods i.e. de-oiled cake and oil.

Venky’s India is engaged in manufacturing of poultry and poultry related products, animal health products and de-oiled soya cake. The company is the prominent supplier to many QSRs and international chains like Kentucky Fried Chicken (KFC), Pizza Hut, Tacobell, TGI Friday, Brinkers, Vista Foods, Burger King, McDonalds etc.

A combined 1.55 million equity shares, representing 11.03 per cent of total equity of Venky’s India, changed hands and there were pending buy orders for 150,000 shares on the NSE and BSE till the time of writing of this report.

Shares of Vadilal Enterprises, meanwhile, hit a new high of Rs 4,795.70, zooming 20 per cent on the BSE, after it reported PAT of Rs 28.97 crore in Q1FY25. The company, engaged in the dairy products business, had posted a net profit of Rs 10.42 crore in Q1FY24 and a loss of Rs 8.71 crore in the March 2024 quarter.

The company is engaged in the marketing and distribution of ice creams, dairy products, frozen desserts, and processed food products of the brand “Vadilal” all over India except in Maharashtra, Goa, Karnataka, Kerala, Andhra Pradesh and Telangana.

Vadilal Group has an established brand presence across India as well as the US, where its target customer base is the Indian-origin population. Vadilal is one of the top ice cream brands in India, with a strong presence in Gujarat. The group operates around 40 company-owned ice cream parlours in Ahmedabad.

The ice cream business is highly seasonal in nature, with maximum consumption taking place during the summer season. Consequently, the first quarter of every fiscal year accounts for around 38 per cent of the annual sales and about 40 per cent of annual Ebitda. This seasonality of business restricts the group’s return on capital employed, due to poor sales during the non-peak season.

“In addition, the peak consumption season in the US markets tends to be the second quarter of the fiscal year. Given the increasing share of exports to the US, the peak sales of the group could be spread across the first and second quarters of the fiscal year, thereby offsetting the risk of seasonality to some extent,” India Ratings and Research (Ind-Ra) said in its rationale.

Separately, shares of BASF India were locked in the 20-per cent upper circuit at Rs 6,925.70, also its record high, after the specialty chemicals company posted a net profit of Rs 22.06 crore in Q1FY25, as against Rs 11.27 crore in the year-ago quarter (Q1FY24).

The portfolio of BASF comprises six segments: chemicals, materials, industrial solutions, surface technologies, nutrition and care and agricultural solutions.

The company’s products cater to various end-user industries, including automotive, personal and home care, agriculture, footwear, pharmaceuticals, petrochemicals, and refining. The diversified revenue streams mitigate the impact of cyclicality and competitive pressures in any particular business segment.

Over the medium term, stabilisation in key crude oil-linked input prices, which form a major part of the raw material cost, will help maintain margin at current levels, according to analysts.

First Published: Aug 07 2024 | 3:01 PM IST