Hyderabad-based dairy products maker Heritage Foods Ltd (HFL) on Wednesday (January 22) reported a 59.9% year-on-year (YoY) jump in net profit at ₹43 crore for the third quarter that ended December 31, 2024.
In the corresponding quarter of the previous fiscal, Heritage Foods posted a net profit of ₹27 crore, the company said in a regulatory filing. The company’s revenue from operations increased 10% to ₹1,034 crore as against ₹941 crore in the corresponding period of the preceding fiscal.
At the operating level, EBITDA surged 42% to ₹74 crore in the third quarter of this fiscal over ₹52 crore in the corresponding period in the previous fiscal. EBITDA margin stood at 7.2% in the reporting quarter as compared to 5.4% in the corresponding period in the previous fiscal. EBITDA is earnings before interest, tax, depreciation, and amortisation.
Heritage Foods’ milk procurement volumes surged by 12.62% year-on-year to 1.84 million litres per day (MLPD). This growth was supported by a 2.7% year-on-year decline in average milk procurement prices, which stood at ₹41.91 per litre. However, procurement costs were ₹1.66 per litre higher than Q2 FY25.
Milk sales volumes grew by 6.08% year-on-year, reaching 1.17 MLPD. Despite the increase in volume, the average selling price declined slightly to ₹54.64 per litre from ₹55 per litre in Q3 FY24 due to a shift in the product mix.
The Value-Added Products (VAP) segment continued to demonstrate strong growth, with revenues increasing by 17.6% year-on-year to ₹2,874 million. The segment’s contribution to total revenue rose to 28.2%, up from 26.5% in Q3 FY24.
Including consumer packs of ghee and butter, the VAP segment’s revenue reached ₹3,417 million, registering a robust growth of 19.5% year-on-year. This category now accounts for 33.5% of the company’s total revenue in Q3 FY25, compared to 31.0% during the same period last year.
Brahmani Nara, Executive Director, said, “I am pleased to announce that Heritage Foods Limited has had 10000 million + revenue for the third consecutive quarter. In 3QFY25, our revenue grew by 10% YoY, reaching ₹10,339 million. EBITDA for the quarter was ₹741 million, resulting in a 7.2% margin. Notably, our net profit increased significantly by 60% year-on-year to ₹431 million, resulting in a 4.2% margin, reinforcing our strong financial standing.”
Shares of Heritage Foods ended at ₹455.00, up by ₹12.55 or 2.84% on the BSE.
Sopurce : Dairynews7x7 Jan 22nd 2025 CNBCTV 18 By Jomy Jos Pullokaran and Moneycontrol