About the Company:

Incorporated in March 2003, Mukka Proteins Limited manufactures fish protein products. The company produces and supplies fish meal, fish oil and fish soluble paste, which are essential ingredients for the production of aqua feed (for fish and shrimp), poultry feed (for broilers and layers) and pet food (for dog and cat food).

The company exports its products to over 10 countries, including Bahrain, Bangladesh, Chile, Indonesia, Malaysia, Myanmar, Philippines, China, Saudi Arabia, South Korea, Oman, Taiwan and Vietnam.

As of March 31, 2023, the company employed 385 people from various departments, including technical and support staff, administration, management and operations.

The company currently operates six production facilities, including four in India and two in Oman, which are held by its foreign subsidiary Ocean Aquatic Proteins LLC. In addition, the company operates three blending plants and five storage facilities, all of which are located in India. All of the company's facilities are strategically located near the coast.

The company currently operates six production facilities, including four in India and two in Oman, which are held by its foreign subsidiary Ocean Aquatic Proteins LLC. In addition, the company operates three blending plants and five storage facilities, all of which are located in India. All of the company's facilities are strategically located near the coast.

Images of the products for better understanding: -

Product wise Revenue

Let's break down Mukka Proteins Limited's main products and their contribution to revenue as of March 31, for the past three years:

Fish Meal: For FY 2021 fish meal maintains its importance, accounting for 90.56% of the revenue. For FY 2022 it even more dominant at 92.42% and in FY 23 Contributes a 81.73% to the revenue.

Fish Oil: In FY 2021 contributed 6.14% to the revenue. For FY 2022 a smaller share at 4.22%, but still a valuable part of the overall revenue and for FY 2023 Makes up 14.04% of the revenue, showing its importance in the product lineup.

Fish Soluble Paste: A smaller share at 1.29% for FY 2021. For FY 2022 accounting for 2.74% and finally in FY 2023 it represents 2.29% of the revenue, playing a role in the diverse product range.

Industrial overview:

Share of fisheries sector in AFF (Agriculture, Forestry and Fishing) has grown from 4.5% to 6.9% from fiscals 2017-22. In terms of GVA (Gross Value Added), fisheries have been fastest growing segment in AFF. Its GVA grew ~8.0% during fiscal 2012 to 2022. This segment contributed 6.9% share in the AFF sectoral GVA as of fiscal 2022, and ~1% to overall GVA.

India’s export of fish and fish products has grown at 13% CAGR from fiscals 2012 to 2022 India has a coastline of 7,516.6 km (including mainland, Lakshadweep and Andaman & Nicobar), which helps India’s fishing population. Export of fish and fish products from India has grown at 13% CAGR from ` 166 billion in fiscal 2012 to ` 576 billion in fiscal 2022. Of the total exports in fiscal 2022, frozen shrimp occupied the highest share at 74%, followed by frozen fish at 6%

Government providing support for the fisheries sector in India Pradhan Mantri Matsya Sampada Yojana (PMMSY) As a part of the Atmanirbhar Bharat Abhiyan, the government approved PMMSY in fiscal 2021 to enhance the country’s Blue Revolution by focusing on sustainable and responsible development of the fisheries sector.

Fisheries and Aquaculture Infrastructure Development Fund (FIDF) The FIDF has been envisaged under Union Budget 2018. With a fund size of ₹ 75.2 billion, this scheme tries to improve the fisheries infrastructure, both marine and inland, and also achieve the target of 15 million tons of fish production by 2020, set under the Blue Revolution. In addition, FIDF also tries to achieve sustainable growth of 8-9% to achieve fish production of 20 million tons by fiscal 2023.

Financials:

Overall, the company's performance seems to have improved from 2021 to 2023 as reflected by increasing values in Revenue from Operations, Net Profit Margin and EBITDA. For instance, revenue from operations increased from ₹ 603.83 Crores in 2021 to ₹ 1,177.12 crores in 2023, and the net profit margin increased from 1.82%to 4.04%. EBITDA Margin is up from 5.27% in 2021 to 8.01% in 2023. Also, some metrics like return on equity (ROE) and Return on Capital Employed (ROCE) have shown increasing trends over the same period.

Risk Factors:

1. The company, along with some subsidiaries, promoters, directors, and group companies, is currently involved in various legal proceedings. If these legal matters result in unfavorable decisions, it could potentially have a significant negative impact on the business, financial condition, and operational results of the company. Therefore, any adverse outcomes in these legal proceedings pose a material risk to the overall well-being and stability of the company.
2. A significant majority of our revenues from operations are derived from a limited number of customers. Top 10 customers contribute 72.29% out of total revenue.
3. The Company is dependent on global suppliers for the supply of raw materials and key inputs and may not be able to reduce its dependency on such imports.