Heritage Foods slumps as Q4 PAT tanks 6% YoY to Rs 38 crore

Heritage Foods tumbled 4.79% to Rs 409 after its consolidated net profit slipped 5.74% to Rs 38.16 crore in Q4 FY25 as against Rs 40.49 crore in Q4 FY24.

However, revenue from operations jumped 10.30% year on year to Rs 1,048.5 crore in Q4 FY25.

Profit before tax was at Rs 54.17 crore in the forth quarter of FY25, down of 1.18% as against Rs 54.82 crore posted in Q4 FY24.

EBITDA jumped 13.81% YoY to Rs 79.90 crore, while EBITDA margin improved by 23 bps to 7.4% during the quarter under review.

On the segmental front, revenue from dairy was at Rs 1034.5 crore (up 10.56% YoY), feed revenue was at Rs 48.49 crore (up 12.63% YoY), and revenue from renewable energy stood at Rs 1.88 crore (down 3.58% YoY) during the quarter.

In Q4FY25, the average milk procurement prices stood at Rs 42.9 per litre, up 3.1% YoY, while the company handled an average of 1.76 million litres per day (MLPD).

The companys (value-added products) VAP segment continued to gain traction, delivering a 19.3% YoY increase in revenue to Rs 336.20 crore. Its contribution to total revenue rose to 32.5%, up from 30.1% in Q4 FY24.

The companys wholly owned subsidiary, Heritage Nutrivet, posted a 15.5% YoY increase in revenue, reached Rs 184.90 crore. Profit after tax surged by an impressive 137% YoY to INR 12.40 crore, reflecting operational efficiency and strategic focus.

Commenting on the Results, Brahmani Nara, executive director, said: Im pleased to share that weve delivered our highest-ever quarterly and annual revenue, crossing Rs 41,346 million in FY25. Excluding our bulk B2B segment, revenue growth remained consistently above 10% each quarter, reflecting the strength of our core portfolio and market strategy despite industry headwinds.

Net profit grew 77% year-on-year to Rs 1,883 million, driven by a 2.3% increase in Value-Added Products contribution, now at 32%, and favourable input costs. We continued to strengthen our omni-channel presence, with deeper penetration across traditional trade and the fast-growing Q-commerce space. Its especially rewarding to see our brand retain the No.1 position in both Top-of-Mind Awareness and Loyalists for Curd and Paneer in our core markets, as per our latest Brand Health Tracker.

Meanwhile, the company recommended a final dividend Rs.2.50/- (50%) per equity shares of face value of Rs 5/- each for the financial year 2024-25, subject to the approval of shareholders in the ensuing 33rd annual general meeting.

Further, Heritage Foods has acquired a majority stake in Heritage Novandie Foods (HNFPL) for Rs 8.5 crore, enabling a strategic shift to a lean contract manufacturing model.

Heritage Foods is one of the largest private sector dairy enterprises in southern India. Its milk and milk products have a market presence in Andhra Pradesh, Telangana, Karnataka, Kerala, Tamil Nadu, Maharashtra, Odisha, NCR Delhi, Haryana, Rajasthan, Uttarakhand, and Uttar Pradesh.

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