India's largest shrimp feed producer Avanti Feeds saw net profits drop 35 percent in the quarter ending Dec. 31 compared to the same time the year prior.
During the period, net profits plummeted to INR 478 million (€6 million/$6.7 million).
Meanwhile, overall revenues in the quarter increased nearly 11 percent year-on-year to INR 9.2 billion (€117 million/$129 million).
The company's sales are split between its shrimp feed business, which is the largest division, and its shrimp processing and export business.
Shrimp feed revenues in the quarter increased 8 percent to INR 6.5 billion (€82.5 million/$91 million).
Processed shrimp revenues rose 16 percent to 2.6 billion (€33 million/$36.5 million).
The company serves more than 13,000 Indian shrimp farmers. Feed now accounts for 86 percent of sales helped by demand from shrimp producing powerhouse state Andhra Pradesh in the southeast of the country.
Avanti Feeds was born in 1992 after Alluri Indra Kumar convinced his now late father to switch from tobacco processing into feed.
Two years later the company signed a technical collaboration deal with Taiwan’s Ping Tai Enterprise.