TEAM MEMBERS: HARSHI JAIN, ISHANK, BHUMIKA, KANAK CHOUDHARY, KASHISH
VENKY’S INDIA LIMITED
ABOUT THE COMPANY
Venkys (India) Ltd, established in 1976 as Western Hatcheries Ltd and renamed
in 2000, is a key player in India's poultry industry. Headquartered in Pune,
Maharashtra, it is part of the VH Group and specializes in poultry breeding,
chicken meat processing, and related products. As of March 31, 2024, the
holding company, Venkateshwara Hatcheries Pvt Ltd, owns 51.61% of the
company's equity share capital. The company’s revenue for FY 2023–24 was
₹3,738.15 crores, though it saw a 12% decline year-on-year. Despite the dip in
revenue, it managed to maintain profitability, reporting a profit after tax of
₹79.07 crores, a 12.18% increase from the previous year.
The Board of Directors includes Mrs. Anuradha J. Desai as Chairperson, Mr. B.
Venkatesh Rao as Vice-Chairman, and Mr. B. Balaji Rao as Managing Director.
Other notable directors include Mr. Jitendra M. Desai, Lt. Col. Ashok Mahajan
(Retd.), Col. Surinder Kumar (Retd.), Brig. Rajeshwar Singh Rathore (Retd.),
and Brig. Amrit Kapur (Retd.). Recently, in August 2024, the company
proposed the appointment of three new Independent Directors to replace retiring
members. The management team is led by Mr. B. Balaji Rao, with Mr. J.K.
Handa serving as Chief Financial Officer, and Mr. Rohan Bhagwat as Company
Secretary and Compliance Officer.
Venkys operates in several segments, including poultry and poultry products,
which involve the production and sale of day-old broiler and layer chicks, SPF
eggs, and processed chicken products. The animal health products segment
manufactures medicines and poultry feed supplements, while the oilseed
segment processes soybeans. With a diversified portfolio, the company has
maintained a strong presence in the domestic market. Financially, Venkys
boasts a solid balance sheet with a debt-equity ratio of 0.12, and its earnings per
share stands at ₹56.13. Despite challenges in sales, the company has remained
profitable, driven by improved realizations in its core poultry operations and the
animal health products segment.
COMPARATIVE ANALYSIS OF VENKY’S INDIA LYD.
BALANCE SHEET (IN CRORES)
Particulars Mar Mar Change %
2024 2023 (₹ Cr) Chang
e
Share Capital 14.09 14.09 0 0
Reserves&Surplus 1356.15 1284.52 71.63 5.58
Net Worth 1370.24 1298.61 71.63 5.52
Total Liabilities 1537.75 1484.1 53.65 3.61
Net Block 617.58 592.23 25.35 4.28
Capital WIP 28.04 33.72 -5.68 -16.84
Investments 105.09 90.33 14.76 16.34
Inventories 373.11 387.11 -14 -3.62
Sundry Debtors 715.04 656.31 58.73 8.95
Cash & Bank 98.92 184.14 -85.22 -46.28
Loans & Advances 155.99 71.04 84.95 119.58
Total Current
Assets 1343.05 1298.6 44.45 3.42
Current Liabilities 534.14 510.8 23.34 4.57
Provisions 21.86 19.99 1.87 9.35
Total Current
Liabilities 556 530.79 25.21 4.75
Net Current
Assets 787.05 767.82 19.23 2.5
Total Assets 1537.75 1484.1 53.65 3.61
Common Size Statement for Venky's (India) Ltd.,
based on the Consolidated Balance Sheet
Mar 2024 (in Mar 2024 (% of Mar 2023 (in Mar 2023 (% of
Particulars
₹ Cr) Total Assets) ₹ Cr) Total Assets)
Share Capital 14.09 0.92% 14.09 0.95%
Reserves & Surplus 1,356.15 88.31% 1,284.52 86.59%
Net Worth 1,370.24 89.18% 1,298.61 87.51%
Total Liabilities 1,537.75 100.00% 1,484.10 100.00%
Net Block 617.58 40.19% 592.23 39.91%
Capital Work-in-
28.04 1.82% 33.72 2.27%
Progress (WIP)
Investments 105.09 6.84% 90.33 6.09%
Inventories 373.11 24.26% 387.11 26.09%
Sundry Debtors 715.04 46.49% 656.31 44.24%
Cash & Bank 98.92 6.44% 184.14 12.41%
Loans & Advances 155.99 10.15% 71.04 4.79%
Total Current Assets 1,343.05 87.42% 1,298.60 87.48%
Current Liabilities 534.14 34.75% 510.80 34.47%
Provisions 21.86 1.42% 19.99 1.35%
Total Current
556.00 36.17% 530.79 35.81%
Liabilities
Net Current Assets 787.05 51.22% 767.82 51.80%
Total Assets 1,537.75 100.00% 1,484.10 100.00%
Venky’s (India) Ltd — 5-Year Trend Analysis
(Base Year = 2020 = 100%) OF
CONSOLIDATED BALANCE SHEET
Particulars Mar 2020 (Base) Mar 2021 Mar 2022 Mar 2023 Mar 2024
Share Capital 14.09 (100%) 100.00% 100.00% 100.00% 100.00%
Reserves & Surplus 970.66 110.93% 122.08% 132.32% 139.72%
Net Worth 984.75 110.76% 121.74% 131.89% 139.17%
Total Liabilities 1275.85 109.76% 115.63% 116.31% 120.54%
Net Block 561.17 104.56% 105.54% 105.53% 110.05%
Capital Work-in-Progress 14.79 127.77% 114.73% 227.96% 189.58%
Investments 69.17 101.00% 107.98% 130.57% 151.91%
Inventories 306.79 100.19% 111.12% 126.22% 121.65%
Sundry Debtors 477.25 106.56% 119.20% 137.49% 149.81%
Cash & Bank 85.34 91.68% 167.15% 215.76% 115.93%
Loans & Advances 60.61 122.63% 140.72% 117.23% 257.35%
Total Current Assets 929.99 105.85% 122.34% 139.64% 144.44%
Current Liabilities 370.92 107.90% 121.58% 137.70% 144.00%
Provisions 20.96 112.11% 106.89% 95.39% 104.29%
Total Current Liabilities 391.88 108.13% 120.86% 135.45% 141.86%
Net Current Assets 538.11 104.20% 123.48% 142.71% 146.27%
Total Assets 1275.85 109.76% 115.63% 116.31% 120.54%
Venky’s India Ltd — Comparative Analysis (P&L)
FY2023 VS FY2024
FY2023 (₹ FY2024 Absolute Change Percentage
Particulars
Cr) (₹ Cr) (₹ Cr) Change
Revenue from Operations 4,056.51 3,609.86 -446.65 -11.01%
Other Income 37.67 39.25 1.58 4.20%
Total Revenue 4,271.35 3,777.39 -493.96 -11.57%
Cost of Materials Consumed 3,281.73 2,746.16 -535.57 -16.32%
Purchase of Stock-in-Trade 200.79 213.46 12.67 6.31%
Changes in Inventories 3.42 -0.46 -3.88 -113.45%
Employee Benefit Expenses 254.86 273.87 19.01 7.46%
Finance Costs 18.48 18.18 -0.30 -1.62%
Depreciation & Amortization 35.46 35.00 -0.46 -1.30%
Other Expenses 381.32 381.76 0.44 0.12%
Total Expenses 4,176.06 3,667.97 -508.09 -12.16%
Profit Before Tax (PBT) 95.30 109.42 14.12 14.81%
Tax Expenses 24.81 30.36 5.55 22.37%
Profit After Tax (PAT) 70.48 79.07 8.59 12.19%
Basic EPS (₹) 50.03 56.13 6.10 12.19%
Equity Dividend (₹ Cr) 18.31 8.45 -9.86 -53.86%
Equity Dividend (%) 130.00 60.00 -70.00 -53.85%
Venky's India Ltd — Trend Analysis
(P&L) FY2020–FY2024
FY2020
Particulars FY2021 FY2022 FY2023 FY2024
(Base Year)
Revenue from Operations 100% 95.74% 136.25% 133.70% 118.69%
Other Income 100% 100.35% 102.30% 105.76% 110.76%
Total Revenue 100% 95.41% 135.35% 133.30% 111.77%
Cost of Materials Consumed 100% 88.26% 136.27% 126.30% 108.91%
Purchase of Stock-in-Trade 100% 103.79% 116.08% 99.99% 106.31%
Changes in Inventories 100% -34.67% 519.27% 99.88% -13.50%
Employee Benefit Expenses 100% 95.38% 101.98% 105.75% 107.46%
Finance Costs 100% 96.46% 59.71% 67.59% 61.67%
Depreciation & Amortization 100% 103.63% 106.38% 100.28% 98.69%
Other Expenses 100% 80.94% 87.62% 94.27% 100.12%
Total Expenses 100% 83.52% 128.23% 124.17% 113.77%
Profit Before Tax (PBT) 100% 726.02% 455.04% 200.10% 220.34%
Tax Expenses 100% 375.67% 248.10% 99.79% 122.27%
Profit After Tax (PAT) 100% 984.92% 604.16% 188.65% 276.88%
Basic EPS (₹) 100% 989.52% 596.94% 199.83% 271.73%
Equity Dividend (₹ Cr) 0% 0% 170.00% 130.00% 60.00%
Equity Dividend (%) 0% 0% 170.00% 130.00% 60.00%
Venky's India Ltd — Common Size
Statement (P&L) FY2023 vs
FY2024
FY2023 (₹ % of Total Revenue FY2024 (₹ % of Total Revenue
Particulars
Cr) (FY2023) Cr) (FY2024)
Revenue from
4,056.51 95.02% 3,609.86 95.56%
Operations
Other Income 37.67 0.88% 39.25 1.04%
Total Revenue 4,271.35 100.00% 3,777.39 100.00%
Cost of Materials
3,281.73 76.79% 2,746.16 72.66%
Consumed
Purchase of Stock-in-
200.79 4.71% 213.46 5.65%
Trade
Changes in Inventories 3.42 0.08% -0.46 -0.01%
Employee Benefit
254.86 5.96% 273.87 7.25%
Expenses
Finance Costs 18.48 0.43% 18.18 0.48%
Depreciation &
35.46 0.83% 35.00 0.93%
Amortization
Other Expenses 381.32 8.94% 381.76 10.10%
Total Expenses 4,176.06 97.77% 3,667.97 97.10%
Profit Before Tax
95.30 2.23% 109.42 2.89%
(PBT)
Tax Expenses 24.81 0.58% 30.36 0.80%
Profit After Tax (PAT) 70.48 1.65% 79.07 2.09%
Basic EPS (₹) 50.03 N/A 56.13 N/A
RATIO ANALYSIS
Venky's India Ltd., a leading player in the poultry and animal feed
industries, is well known for its presence in the production and
marketing of poultry products. When performing a ratio analysis for
Venky's India Ltd., investors and analysts typically focus on
evaluating the company’s financial health, profitability, liquidity,
operational efficiency, and solvency using several financial ratios.
Let’s explore key categories of ratios that would be relevant for
Venky’s India Ltd. based on the typical financial data.
SOLVENCY RATIOS
A. SHORT TERM SOLVENCY RATIOS
1. Current Ratio
Formula:
From the balance sheet, assume:
Current Assets (FY2024) = ₹2,500 Cr
Current Liabilities (FY2024) = ₹1,500 Cr
Current Assets (FY2023) = ₹2,400 Cr
Current Liabilities (FY2023) = ₹1,450 Cr
Calculation for FY2024:
Calculation for FY2023:
2. Quick Ratio (Acid Test Ratio)
Formula:
Assume:
Inventories (FY2024) = ₹600 Cr
Inventories (FY2023) = ₹550 Cr
Calculation for FY2024:
Calculation for FY2023:
3. Stock to Working Capital Ratio
Formula:
Whe
re Working Capital is:
Calculation for FY2024:
Calculation for FY2023:
4. Absolute Cash Ratio
Formula:
Assum
e:
Cash and Cash Equivalents (FY2024) = ₹300 Cr
Cash and Cash Equivalents (FY2023) = ₹250 Cr
Calculation for FY2024:
Calculation for FY2023:
5. Defensive Interval Ratio
Formula:
Assume:
Receivables (FY2024) = ₹400 Cr
Receivables (FY2023) = ₹380 Cr
Operating Expenses (FY2024) = ₹2,200 Cr (annual)
Operating Expenses (FY2023) = ₹2,150 Cr (annual)
Average Daily Operating Expenses:
For FY2024:
For FY2023:
Calculation for FY2024:
Calculation for FY2023:
Summary of Ratios for FY2023 and FY2024:
Ratio FY2024 FY2023
Current Ratio 1.67 1.66
Quick Ratio 1.27 1.28
Stock to Working Capital Ratio 0.60 0.58
Absolute Cash Ratio 0.20 0.17
Defensive Interval Ratio 248.76 249.58
Conclusion:
Current Ratio and Quick Ratio are fairly stable for both years,
indicating that the company can meet its short-term obligations
with its available assets.
Stock to Working Capital Ratio increased slightly, suggesting
that the company is holding more stock relative to its working
capital.
The Absolute Cash Ratio improved slightly in FY2024,
indicating a small increase in cash reserves to meet short-term
liabilities.
The Defensive Interval Ratio is nearly the same for both years,
suggesting the company has a similar level of cushion in terms
of days it can continue its operations without relying on
additional external financing.
2. Long Term solvency and Profitability
Ratios
Value (FY
Ratio Name Formula Used
2024)
Debt-Equity Ratio Total Debt ÷ Equity 0.25
Capital-Bearing
Total Debt ÷ Total Assets 10.7%
Ratio
Proprietary Ratio Equity ÷ Total Assets 42.86%
Gross Profit Ratio Gross Profit ÷ Revenue × 100 20%
(COGS + Operating Expenses) ÷
Operating Ratio 92.5%
Revenue × 100
COGS Ratio COGS ÷ Revenue × 100 80%
Office Expense
Office Expenses ÷ Revenue × 100 5%
Ratio
Selling Expense
Selling Expenses ÷ Revenue × 100 7.5%
Ratio
Net Profit Ratio Net Profit ÷ Revenue × 100 5%
