CHENNAI: The Waterbase Ltd, the pioneering aquaculture firm in India, has reported a 23% growth in net profit for Q1FY19 at Rs 17.7 cr. Profit before tax rose to Rs 27.2 cr from 22.2 cr a year ago, while income rose to R s158.5 cr as against Rs 126.2 cr earlier.
The company has completed construction of Phase I of Vannamei Hatchery and trial production has commenced.
Mr. Ramakanth V. Akula, CEO said, “We have started the year well as reflected in the strong revenue growth during the quarter. A steady performance by the feed business on the back of robust volume growth in newer markets and territories has been supported by healthy traction from farm care products, which are now available across more touch points and continue to garner positive response from our customers.
Raw material costs have significantly risen after touching record lows last year. As a result, the margins have contracted, impacting operational profitability. The fall in farmgate prices coupled with disease outbreak in Andhra markets have dented the growth in feed sales during the quarter. The shrimp farmers are undecided whether to go in for the second crop looking at the prevailing farmgate prices. Any reduction in the area under shrimp farming or reduction in the stocking densities will impact feed business. However, we are cautiously optimistic on the revival of farmgate prices from the beginning of the third quarter.
Despite the near-term challenges, we believe that the long term fundamentals of the business continue to remain strong. With increasing penetration into newer markets and territories, we are steadily reducing geographical concentration risk in the feed business. The addition of revenue streams of farm care products and hatchery will strengthen our go-to-market platform thereby elevating our growth prospects.”