Muted set of nos from the feed division of Avanti. Margin revival is still a couple of quarters away. Concall notes below
- Estimate shrimp feed consumption of 12.5-13 lakh MT in CY22 with production of 8-8.5 lakh MT shrimp
- Could not meet the demand due to capex delay which impacted shrimp feed volumes. Projecting sales of 5.7-5.8 lakh MT feeds in calendar year 2022
- Almost completed shrimp feed expansion of 1.75 lakh MTPA with estimated capex of 125 cr. (vs 50 cr. mentioned earlier). Commercial production should start in September 2022
- Should be able to meet the excess demand in next growing season with capacity coming on stream
- Out of 1.75 lakh MTPA of new capacity coming in, only about 80% is realizable as it’s a seasonal business
- Seeing soft shrimp demand in US, expect it to revive in November
- As FDA has terminated recall in May 2022, company has applied for removal of import alert
Disclosure: Invested (position size here, no transactions in last-30 days)