Avanti Feeds - Muted Off-Take But Lower Input Prices Lift Q3 Margins: ICICI Securities
Shrimp sit in a tray on a boat in Texas, U.S. (Photographer: Sergio Flores/Bloomberg)

Avanti Feeds - Muted Off-Take But Lower Input Prices Lift Q3 Margins: ICICI Securities

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICICI Securities Report

Takeaways from Q3 FY21-

1. There is reduction in shrimp off-take in key market of USA which impacted processed shrimp segment. It reported revenue decline of 9.8% YoY,

2. Shrimp feed reported 2.9% revenue growth. We believe the company is well poised to gain market shares in shrimp feed from smaller players and

3. With stability in input prices and selective price hikes, the Ebitda margin is likely to stabilize approximately 12.5% in FY21-22 (FY20: 11%).

Slow-down in the company’s key market (USA) and lower off-take by hotel restaurant cafe segment (~50% shrimp consumption in USA) continue to hurt the company’s exports.

Click on the attachment to read the full report:

ICICI Securities Avanti Feeds Q3FY21 Results Update.pdf


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