News Karnataka
Friday, December 02 2022

Poultry profitability expected to improve by 200 bps in FY21: Crisil

Photo Credit :

Mumbai: The profitability of the poultry sector is expected to improve by 200 bps in FY21, rating agency Crisil Ratings said on Thursday.

As per a Crisil analysis of 87 poultry companies, higher realisations and lower input prices will lead to an improvement in profitability.

“The poultry industry will shake off the woes heaped by the Covid-19 pandemic and post a better performance this fiscal because of higher realisations and lower input prices, leading to a 200 basis points (bps) improvement in operating profitability, despite flattish revenues,” the agency said.

“Better profitability and modest capital spending will help improve credit profiles for the industry’s players.”

According to the agency, wholesale prices of broiler chicken crashed to a low of around Rs 50 per kg in March 2020 from Rs 90 per kg in Jan 2020, due to fears over the spread of Covid-19 virus through poultry.

“The unviable prices led to the culling of broiler birds, as costs were not being covered, and the creation of a supply shock.

“Thereafter, with fears of the virus not being spread through poultry abating and with demand outpacing supplies, prices of broiler chicken surged more than 20 per cent to Rs 90-100 per kg on average in the first half of the current fiscal from Rs 75-80 per kg last fiscal….”

Besides, the agency noted that supplies took time to catch up as poultry farms waited for the monsoon to get over, thereby inflating prices.

“Broiler prices are expected to average at Rs 100-105 per kg this fiscal.”


Share this:
Support NewsKarnataka's quality independent journalism with a small contribution.

How useful was this post?

Click on a star to rate it!

Average rating 0 / 5. Vote count: 0

No votes so far! Be the first to rate this post.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Leave a Reply

Your email address will not be published. Required fields are marked *

Visit 7Jackpots and find the best online casinos in India! Play the most popular casino games for real money!

Find the best odds at 10Cric and ipl betting 2021! Signup today and get up to a 100% deposit bonus.

To get the latest news on WhatsApp