Mumbai, Nov 11 (NationPress) The poultry industry in India is anticipated to witness a revenue increase of 4-6 percent throughout the ongoing financial year, fueled by rising rural demand, enhanced per capita meat consumption, and an increasing preference for a protein-rich diet, as per a report by Crisil released on Tuesday.

However, the operating margin is expected to dip by 0.8 to 1 percent due to reduced broiler prices in the first half of the financial year. This decline will be somewhat offset by a subsequent recovery in broiler prices and favorable feed costs over the year, according to the report.

Despite the anticipated drop in profitability, the credit profiles of poultry companies are expected to remain stable, supported by modest capital expenditure, minimal debt accumulation, and consistent accrual, the report suggests.

The analysis covers 34 companies with a combined revenue of Rs 10,815 crore during the previous financial year.

The layer/egg segment constitutes 55 percent of the poultry industry's value, while the broiler segment represents the remaining 45 percent. In the broiler segment, revenue growth is projected to slow to 1-3 percent this financial year due to lower realizations.

According to Crisil Ratings director Jayashree Nandakumar, “Wholesale broiler prices have declined by 20 percent year-on-year to Rs 110-115 per kg in the first quarter of this fiscal year. A brief summer and an early monsoon resulted in higher bird weights, creating a surplus in supply. However, with the festive season's arrival, broiler prices have started to rebound. Yet, average broiler prices are expected to be 4-6 percent lower this fiscal year.”

Sales volume in the broiler segment is anticipated to increase by 6-8 percent to approximately 5.86 lakh tonnes in the current financial year.

In the layer/egg segment, sales volume is expected to rise 4-6 percent to nearly 15,750 crore eggs, with prices projected to increase steadily by 2-4 percent amid stable demand. Notably, India's per capita egg consumption stands at 102 per annum, significantly lower than the global average of 218, indicating substantial growth potential. Consequently, revenue in the egg segment is set to grow by 7-9 percent this financial year, the report further elaborates.

Overall, the blended revenue growth of the poultry sector is expected to be 4-6 percent this fiscal year, though profitability remains under pressure. The first half of this fiscal year experienced a significant drop in broiler prices, resulting in considerable inventory losses for industry players and a 2 percent decline in operating margins.

However, in the latter half, industry players are anticipated to minimize losses due to the recovery in broiler prices and favorable feed costs, the report concluded.