Q1 Results: Venky's Shares Skyrocket 20% as Q1 Net Profit Soars 300% to Rs 75 CroreQ1 Results: Venky's Shares Skyrocket 20% as Q1 Net Profit Soars 300% to Rs 75 Crore

On August 7, Venky’s (India) shares surged by 20% after the poultry company announced a significant rise in net profit for the quarter ending June 30, 2024. The net profit for this period was Rs 75 crore, a nearly 300% increase from Rs 19 crore in the same quarter last year.

By 1:35 pm on August 7, Venky’s (India) shares were trading at Rs 2,191.65 each, marking a 20% increase. This impressive growth in share price was driven by the strong quarterly profit figures.

Despite the surge in profit, the company’s revenue declined. In Q1FY25 results, Venky’s reported revenue of Rs 808 crore, which is a 17% drop from Rs 976 crore in Q1FY24. This revenue dip was notable, but it did not overshadow the profit increase.

The company’s EBITDA also showed remarkable improvement, rising to Rs 103 crore in the June quarter from Rs 31 crore a year earlier. This significant growth in EBITDA reflects better operational efficiency and cost management.

Furthermore, Venky’s margins expanded significantly. In the June quarter, the company’s margins grew to nearly 13%, up from 3.2% in Q1FY24. This margin expansion highlights the company’s improved profitability despite the revenue decline.