Heritage Foods reports 96% profit growth in Q3 amid increased dairy demand

Heritage Foods profits soar: Heritage Foods witnessed a 96 per cent surge in profits during the third quarter, attributing the growth to heightened demand for its dairy products. The company's consolidated profit for the quarter ending December 31 soared to Rs 269 million ($3.2 million), compared to Rs 137.3 million the previous year. A 5.2 per cent year-on-year (YoY) increase in the average selling price of milk contributed to a substantial 19 per cent rise in revenue from the dairy business, which stands as the company's primary segment, reaching Rs 9.22 billion.

Analysts from HDFC Securities recently highlighted a growing demand for organised dairy products in India, fuelled by increasing incomes and a preference for healthier alternatives. Heritage Foods aligns seamlessly with this trend, offering products that adhere to quality standards and are presented in branded packaging.

The Hyderabad-based company experienced a notable 20 per cent surge in revenue from operations, reaching Rs 9.41 billion. In a similar vein, peer company Hatsun Agro Products reported a nearly 24 per cent rise in third-quarter profit last week. However, it marked the slowest quarterly profit growth in three quarters for Hatsun Agro Products, primarily due to adverse effects from heavy floods in its home state of Tamil Nadu.

Shares of Heritage Foods closed up 3.3 per cent in anticipation of the positive results.

(With Reuters Inputs)