Avanti Feeds Limited has delivered a strong financial performance for the quarter ended September 30, showcasing significant growth across key financial metrics.

Financial Highlights

The company reported a substantial increase in its consolidated net profit, which rose to Rs 168.79 crore, marking a 38.9% jump from Rs 121.48 crore in the same quarter of the previous year. This growth in profitability underscores Avanti Feeds' ability to enhance its bottom line.

Revenue from operations for the quarter also saw a notable uptick, reaching Rs 160.97 crore, compared to Rs 135.23 crore in the corresponding period last year, representing a 19% year-over-year increase.

Standalone Performance

On a standalone basis, Avanti Feeds posted a net profit of Rs 135.05 crore, up from Rs 106.46 crore in the previous year quarter.

Strategic Developments

Avanti Feeds' Board of Directors has approved a contribution of Euro 10,000 towards subscribing to the issued capital of Sealuxe B.V., Netherlands, a Wholly Owned Subsidiary of the company. Additionally, the Board has given approval to extend an unsecured loan of Euro 40,000 to Sealuxe B.V., Netherlands, for meeting initial revenue expenditures.

Earnings Per Share

The company's earnings per share (EPS) increased to Rs 11.25 from Rs 8.34 on a consolidated basis.

Conclusion

Avanti Feeds' quarterly results, characterized by growth in revenue, profitability, and earnings per share, reflect the company's performance. The expansion into international markets through its Netherlands subsidiary indicates an approach to explore opportunities in the aquaculture industry.

Shares of Indian shrimp feed exporters experienced a significant rally following reports of a potential trade agreement between India and the United States. The deal, if finalized, could substantially reduce US tariffs on Indian imports, potentially boosting the prospects for companies in the seafood export sector.

Market Reaction

The news triggered a strong positive response in the stock market:

Potential Trade Agreement Details

• Current US tariffs on Indian imports: 50.00%
• Proposed reduced tariffs: 15.00-16.00%

This reduction could have a significant impact on Indian seafood exporters, as current high tariffs have made exports largely unviable.

Key Points of Discussion

• US President Donald Trump confirmed discussions with Indian Prime Minister Narendra Modi
• Focus areas: Trade and energy
• Additional reported agreement: India to limit oil purchases from Russia

Market Significance

The United States represents a crucial market for Indian shrimp exporters:

Seafood Export Data

The potential trade agreement could significantly boost these figures by making Indian seafood exports more competitive in the US market.

Impact on Industry

The current total duties on Indian seafood exports to the US, reaching nearly 60.00%, have made exports challenging. A reduction in tariffs could revitalize the industry, potentially leading to increased export volumes and improved profitability for Indian shrimp exporters.

This development is particularly significant for companies like Avanti Feeds, which derives a substantial portion of its revenue from the North American market. The stock market's positive reaction reflects investor optimism about the potential benefits of this trade agreement for the Indian seafood export sector.

As negotiations continue, stakeholders will be closely monitoring further developments that could impact the industry's growth prospects and market dynamics.