Wedoany.com Report-Nov. 8, Venky’s India Ltd (VENK.NS) reported a net loss in the second quarter ended September 30, as lower prices in its poultry business reduced profit margins, sending its shares down 7.4% after the announcement. The Pune-based poultry company posted a loss of 265.3 million rupees, compared with a profit of 77.6 million rupees in the same period last year.

A rooster looks out of a cage at an hatchery in Mangaon, south of Mumbai February 2, 2015.

The company’s poultry and poultry products division, which has faced price pressure for several months, was significantly affected by weak market rates for broiler birds. These birds are either sold to farmers for rearing or processed for consumption. The sustained fall in prices, combined with seasonal factors, continued to weigh on the company’s performance during the quarter.

Venky’s operations are typically influenced by seasonal demand fluctuations, especially during the second and third quarters, when multiple Hindu festivals reduce meat and egg consumption. The company noted in earlier reports that this trend often leads to a temporary slowdown in sales. In the second quarter, the nine-day Hindu festival of Navratri, when participants often avoid meat consumption, further affected poultry demand.

Revenue from the poultry segment fell 18.62% year-on-year, highlighting the pressure on the company’s core business. Poultry and related products account for around 44% of Venky’s total revenue. The decline in this segment was partially offset by strong performance in the oilseed business, which recorded a 36.8% year-on-year growth.

Venky’s oilseed division processes soya to produce edible oil for sale in bulk to traders and de-oiled cake used as poultry feed for other manufacturers. This diversification has helped balance some of the losses from the poultry segment. However, total revenue rose only 3.4% during the quarter, while overall expenses increased 9.4%, narrowing margins further and contributing to the quarterly loss.

The company also announced plans to expand its product portfolio by entering the ready-mix spice powder market. This move aligns with Venky’s broader strategy to diversify income sources and reduce dependence on the volatile poultry segment.

Despite the challenging environment, Venky’s remains a leading player in India’s poultry sector. The company’s results underscore the ongoing impact of market pricing trends, seasonal consumption shifts, and input cost pressures on the poultry industry.

The latest quarterly results show that while the oilseed segment offered some relief, weak poultry prices and higher costs outweighed gains. The company continues to focus on operational adjustments and product diversification to stabilize earnings and support long-term growth amid fluctuating consumer demand.