Venky's (India) Limited Q4 FY24 Earnings Conference Call Summary
Financial Performance
• Poultry Segment: Improved performance due to better sales realization and lower raw material costs.
• Oil Seed Segment: Faced challenges from unfavorable market conditions.
• Management Optimism: Expectation for continued improvement in poultry and potential recovery in oil seed segment.
Capital Expenditure and Shareholder Concerns
• CAPEX: Minimal expected at 40 to 50 crores; major projects completed.
• Stock Buyback: Management to consider a buyback due to low stock price.
• Revenue Concerns: Keshav Garg raised issues about declining revenues and increasing receivables, attributed to poultry sector performance.
Animal Health Product Division
• Capacity Expansion: Recent expansions operational, expected to boost revenues to approximately 310 crores with potential 20% growth.
Poultry and Oilseed Division Outlook
• Poultry Revenue Growth: Anticipated based on positive trends; margins improved from 0% to 3%.
• Oilseed Performance: Expected not to return to previous highs due to lower consumption.
Profitability and Market Conditions
• Profitability Increase: Confirmed quarter-on-quarter despite higher mortality and weight loss.
• Maize Production Concerns: Insufficient production noted; prices currently around Rs. 23-24.
Revenue Breakdown and Franchise Expansion
• Revenue Sources: 42% from group companies, 58% from external sources.
• Franchise Growth: Venky’s Xpress outlets increased by 14; profitability details not provided.
Receivables and Input Prices
• Receivables Increase: Despite declining revenues, management noted improvements since April.
• Input Prices: Decrease in maize and soya prices reported for FY'24; stable prices expected moving forward.
Additional Insights
• Capacity Utilization: New plants operating at 35-40% capacity; older plants at 75-80%.
• Notional Loss Clarification: Rs. 12 crore loss related to biological assets clarified.
• Shareholder Engagement: Management agreed to consider more frequent quarterly calls for insights.
Conclusion
• Open for Questions: Management invited further inquiries via email.

Venky's (India) Limited Q2 FY24 Earnings Conference Call Summary
Financial Performance
• Improved financial results compared to the previous year.
• Poultry segment benefited from lower feed costs and better realizations from day-old chicks and broilers.
• Anticipated recovery in demand post-festivals despite recent price declines.
Margins and Feed Prices
• Current margins are below long-term averages, closely tied to feed prices.
• Expectations for margin improvements as feed prices stabilize.
• Edible oil prices have dropped, impacting margins in the agro and oil segments.
Sales and Market Trends
• Consistent sales volumes reported.
• Positive trends expected for broiler prices post-Diwali.
• Seasonal constraints have led to rising feed prices.
Animal Health Care Project
• New project costing INR 67 crores on track for completion by June.
• Production expected to start in the last quarter of the financial year.
Capacity and Capital Expenditures
• No major capital projects planned for the next 2-3 years; existing capacities are sufficient.
• Current capacity utilization rates: 74% for broilers, 57% for layers.
• New plant projected to boost revenue by 15-18% in the next financial year.
Expansion and Efficiency
• Plans for expanding Venky's Express outlets and introducing new products.
• Improvements in feed conversion ratios for broiler chickens noted.
Industry Challenges and Dynamics
• Domestic poultry industry facing challenges with low prices despite rising demand.
• Shift from open market to professional players holding 70% market share, altering profit cycles.
QSR Segment Outlook
• Optimism for continuous growth in the QSR sector, projecting around 10% increase.
• Venky's is a significant supplier to QSRs, focusing on frozen and chilled chicken products.
Future Projections
• Management projects continuous revenue growth of 10% for the upcoming year, particularly from the QSR sector.
• Call concluded with thanks and a positive outlook for the future.

Company Performance
• Date of Call: May 12, 2023
• Key Issues:
• High poultry feed costs
• Lower sales realizations for day-old chicks and broilers
• Outlook: Cautious optimism due to declining poultry feed prices
Sales and Market Segments
• Sales Volume:
• Slight increase in broiler sales
• Decrease in layer sales compared to the previous year
• Target Segments:
• HoReCa (Hotels, Restaurants, Catering)
• QSR (Quick Service Restaurants)
• Expansion into semi-urban areas
Operating Margins
• Segment Margins:
• Oil Seed: ~3% (influenced by raw material prices)
• Animal Health Products: 21% to 22% (stable)
• Poultry: 8% to 10% (highly variable)
Revenue Breakdown
• Poultry Segment:
• Non-volatile revenues: Approx. INR 400 crores
• Anticipated volume growth: 7% to 10% for oil seed and poultry segments
Growth Expectations
• Animal Health Products: Expected growth of 15% to 17% for FY-24
• Branded Products: Partnerships with KFC and McDonald's; focus on product development and e-commerce expansion
Capital Expenditure and Strategy
• FY '24 Plans: Routine capital expenditure with a new animal health project costing INR 50 crores
• Dividend Strategy: To be determined by the board
• Risk Mitigation: Shift towards non-volatile segments like processed food and oilseeds
Market Conditions
• Raw Material Prices: Significant increases in maize and soya affecting profitability
• Market Stabilization: Small farmers resuming operations post-downturn
• Current Operations: No involvement in egg processing or exports
Conclusion
• Q&A Session: Open invitation for further inquiries from investors.