Hatsun Agro Product Ltd, the Chennai-based dairy company, reported a 12 per cent decline in net profit to ₹52 crore in the first quarter ended June 30, 2022 as against ₹59 crore for the same quarter last year.
Revenue was up 31 per cent to ₹2,015 crore (₹1,539 crore). For the first time, the company crossed the ₹2,000 crore mark in a quarter.
The company in a release said that it experienced high inflation in raw materials, packing materials and logistics. Inflation, after peaking, had started moderating and suitable price corrections were done at the end of first quarter.
The company’s board declared an interim dividend of ₹6 per equity share (600 per cent) on the fully paid up equity shares of the face value of ₹1 per share. This is the first interim dividend declared by the board for the financial year 2022-23, says a company release.
RG Chandramogan, Chairman, Hatsun Agro Product Ltd said; “we are happy to report good growth in revenues and crossing ₹2,000 crores sales mark for the first time in a quarter. Strong sales recovery in the domestic market post Covid with good summer sales led to highest ever quarterly sales volume. All our business segments did well with our leading brands registering healthy sales growth.”
Retail expansion
HAP’s retail expansion in the last two years helped us reach customers in new markets like Maharashtra, Odisha, West Bengal and Madhya Pradesh and also supported existing strong bases in South India.
HAP in the last financial year, had invested about ₹450 crore across new manufacturing facilities for capacity expansion in ice cream, milk, curd, milk products and cattle feed. The new capacities will further support the company’s sales plans for FY23. Considerable investments have also been made to strengthen distribution, sales and marketing of our brands, he said.
HAP started exports of Arun Icecreams to Singapore and Maldives in the last quarter. It has plans to further widen the international reach for Arun Icecreams, the release said.
On the BSE, the company’s share price on Tuesday closed at ₹951.30, up by ₹34.55.