Avanti Feeds Eyes 25% Sales Growth Rate For Two Years
Shares of the Andhra Pradesh-based jumped as much as 20% to a new lifetime high.
Alluri Indra Kumar, chairman and managing director of Avanti Feeds is fairly confident of clocking a 25 percent revenue growth rate for the next two years.
The fish feed maker clocked a 204 percent year-on-year jump in net profit April-June quarter. Operating profit gained 196 percent to Rs 225 crore while operating margin expanded 1,200 basis points to 22.5 percent. Revenue increased 37.8 percent to Rs 998 crore.
A combination of favourable international prices and strong demand from U.S. and other countries aided the first quarter earnings, Kumar told BloombergQuint in a phone interview.
"To achieve a similar level of growth in the margin is difficult due to routine fluctuations in prices of raw materials but margin may settle between 15 to 20 percent in the future," Kumar said.
Kumar said the company is not planning on any fund raising in the near future. The company’s processing plant has been upgraded to the current requirements, he said.
Shares of the Andhra Pradesh-based firm jumped as much as 20 percent to Rs 1,976 each, a new lifetime high for the stock.