India's Heritage Foods posts Q3 profit surge

Strong demand for dairy products
calendar icon 29 January 2024
clock icon 1 minute read

India's Heritage Foods reported a 96% jump in third-quarter profit on Monday, helped by strong demand for its dairy products, reported Reuters.

The dairy producer's consolidated profit rose to 269 million rupees ($3.2 million) for the quarter ended Dec. 31 from 137.3 million rupees a year earlier.

The average selling price of milk rose 5.2% year-on-year, boosting the company's revenue from the dairy business - its biggest segment - by nearly 19% to 9.22 billion rupees.

Earlier this month, analysts at HDFC Securities said the demand for organised dairy products in India is going up due to rising income and a preference for healthier options.

Heritage Foods fits well into this trend, offering products that meet such rules and standards and come in branded packaging.

The Hyderabad-based company's revenue from operations rose nearly 20% to 9.41 billion rupees.

Last week, peer Hatsun Agro Products reported a nearly 24% rise in third-quarter profit, its slowest quarterly profit growth in three quarters, hurt by heavy floods in home state Tamil Nadu.

Shares of Heritage Foods closed up 3.3% ahead of the results. 

($1 = 83.1160 Indian rupees)

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