India's Heritage Foods posts Q3 profit surge
Strong demand for dairy products
29 January 2024
1 minute read
By: 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)
