Indian dairy firm Hatsun Agro reports near 83% rise in Q2 profit
Strong demand led to increase profit
23 October 2023
1 minute read
By: Indian milk processing firm Hatsun Agro Product on Thursday posted a near 83% rise in second-quarter profit on strong demand for its milk and dairy products, with proceeds from a one-time asset sale contributing, reported Reuters.
The company, which sells products under brands such as Arun Ice Cream, Arokya Milk and Hatsun Curd, said its profit after tax rose to 775.7 million rupees ($9.32 million) for the quarter ended Sept. 30, from 424.8 million rupees a year earlier.
Revenue from operations rose 9% year-on-year to 19.05 billion rupees, offsetting a 7.4% rise in total expenses to 18.18 billion rupees.
The cost of raw materials, which accounts for 88% of the total expenses, grew 25.5%.
Earlier this month, analysts at Elara Capital said they anticipate sustained sales growth in India's dairy industry as it continues to see an uptick, driven by increasing demand in urban centres.
The Chennai-based Hatsun also realised 101.3 million rupees from the sale of windmills in September, classifying the amount under the 'other income' segment in its quarterly financial result on Thursday.
Peer Heritage Foods on Wednesday reported a more than 17% jump in its second-quarter profit.
Shares of Hatsun Agro closed 0.5% up ahead of the results.
($1 = 83.2194 Indian rupees)
