Avanti Feeds Reports Robust Q2 Performance with 35% Surge in Net Profit

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

Financial Highlights

The company reported a substantial increase in its consolidated net profit, which rose to 1.53 billion rupees in Q2, marking a 35% jump from 1.13 billion rupees in the same quarter of the previous year. This impressive growth in profitability underscores Avanti Feeds' ability to enhance its bottom line despite challenging market conditions.

Revenue for the quarter also saw a notable uptick, reaching 16.09 billion rupees, compared to 13.52 billion rupees in the corresponding period last year, representing a 19% year-over-year increase. This growth in revenue indicates strong demand for the company's products and effective sales strategies.

Operational Performance

Avanti Feeds demonstrated improved operational efficiency, with EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) growing to 1.94 billion rupees from 1.35 billion rupees in the year-ago quarter, a substantial increase of 43.7%.

The EBITDA margin also saw a significant improvement, rising to 12.07% from 10.04% year-over-year. This expansion in margin suggests that the company has been successful in managing its costs and improving its operational efficiency.

Segment Performance

The company's financial results reveal strong performance across its key business segments:

Segment	Revenue (in crore)
Shrimp Feed	11,555.42
Processed Shrimp	4,514.92
Power	8.16
Shrimp Hatchery	18.36

Strategic Developments

In a significant move to expand its international presence, Avanti Feeds' Board of Directors has approved a contribution of 10,000 Euros towards subscribing to the issued capital of Sealuxe B.V., Netherlands, a Wholly Owned Subsidiary of the company. Additionally, the Board has given the green light to extend an unsecured loan of 40,000 Euros to Sealuxe B.V., Netherlands, for meeting initial revenue expenditures.

Conclusion

Avanti Feeds' strong Q2 results, characterized by significant growth in revenue, profitability, and operational efficiency, reflect the company's resilience and strategic focus. The expansion into international markets through its Netherlands subsidiary indicates a forward-looking approach to capitalizing on global opportunities in the aquaculture industry.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-2.11%	-4.35%	+4.83%	-20.06%	+20.24%	+44.27%

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:

Company	Stock Movement
Avanti Feeds	+6.00%
Apex Frozen Foods	+9.00%
Coastal Corporation	+20.00% (hit circuit limit)

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:

Company	Revenue from North America
Avanti Feeds	77.00%
Apex Frozen Foods	53.00% (US specific)

Seafood Export Data

Year	Total Seafood Exports	Exports to US	Change
2023-24	Not Available	$2.55 billion	-
2024-25	$7.45 billion	$2.71 billion	+6.27%

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.