Heritage Foods Q3 results: Profit surges 96% on strong dairy demand

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

The dairy producer's consolidated profit rose to Rs 2.69 crore ($3.2 million) for the quarter ended Dec. 31 from Rs 1.373 crore 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 Rs 922 crore.

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 Rs 941 crore.

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.