Heritage Foods Q2 net up 183% to Rs 20.98 cr

Private dairy firm Heritage Foods Wednesday reported a 183 per cent year-on-year jump in net profit at Rs 20.98 crore in the September quarter.

It had posted a profit of Rs 7.41 crore in the same period last year.

The company's revenues from operations rose marginally to Rs 619.37 crore during the quarter, compared with Rs 616.08 crore in the year-ago period, a company statement said.

Its EBITDA grew by 120.2 per cent to Rs 50.32 crore, against Rs 22.85 crore in the same quarter last year. The EBITDA margin improved by 442 basis points to 8.1 per cent, against 3.7 per cent last year.

Brahmani Nara, executive director, Heritage Foods, said, the firm posted noticeable growth in its profitability during the quarter led by improvement in margins.

"We are expecting pick-up in demand for our dairy products in the second half of this year. Our focus is on increasing our market shares in our key business segments and we believe that our strong competitive advantage would help us to drive our profitability going forward," he added.

The installed chilling capacity of the company has grown to 18.71 lakh litres per day (LPD), compared with 16.91 lakh LPD in the corresponding quarter of last year, according to the statement.

The processing capacity of the milk and milk products has increased to 25.70 lakh LPD, against 18.90 lakh LPD in the same period last year, while the milk packing capacity rose to 17.15 lakh LPD, compared with 11.35 lakh LPD.

The number of franchisee parlours have gone up to 1,509, against 129 parlours in the year-ago quarter.

The company's stocks ended the day 11.12 per cent up at Rs 548.40 apiece on the BSE, against 1.63 per cent rise in the benchmark.